YOUR COMPLIMENTARY COPY BRIEFING aims to export $190B in 2020

INDEPT Turkish Jewelry all over the Word

INTERVIEW Deva CEO TheTurkish Philipp Haas

PerspectiveFEBRUARY 2020 ISSUE 79 ECONOMY I BUSINESS I FOREIGN TRADE I ANALYSIS

Istanbul Jewelry School Spreads to the World Behold the jewels, from the ancient lands, where civilisations flourished, gifts crafted by the artisanship of ages. It is the historical and cultural heritage that these rare accesories bear, that makes you feel special when you touch, put them on or wear them, rather than their monetary value.

The Turkish Perspective

TheTurkish Perspective Contents FEBRUARY 2020 ISSUE 79

Snow Globe of the World: 42Turkey

Mckinsey: Artificial Intelligence The Power Symbol Turkey’s innovation ecosystem 14 to create 3.1 million jobs in 28 of Turkey: Jewelry 46 grows above the EU average Turkey

2019 exports reach to record Kamar: Our exports totaled 7.2 16 level of 180.5 billion dollars 30 billion dollars in 2019

THY awarded as Turkey’s A Master of Murassa: 20 top service exporter 35 Hrac Aslanyan

Franchise sector to create an FDI Spotlight in Turkey Turkey’s Car Introduced 48 ecosystem of 50 billion dollars 22 38 in 2020

Foreign investors generated 64 Turkey eyes 120 billion USD Gastronomical reflection of 26 percent of Turkish M&A market 40 from tourism 54 Turkish Culture deal volume Mediterranean Cuisine FEBRUARY 2020 ISSUE 79 3 TheTurkish Perspective FEBRUARY 2020 ISSUE 79

THE TURKISH PERSPECTIVE RENEWED Management Publisher On Behalf Of Turkish Exporters Assembly Chairman Of The Turkish Exporters Assembly The Turkish Perspective continues publishing İsmail GÜLLE Strategic Partner with its renewed content in 2020. President Of The Presidency Of The Republic Of Turkey Investment Office Arda ERMUT

Manager In Charge ✓ Turkey’s riches waiting to be discovered Prof. Dr. Kerem ALKİN ✓ Turkey from foreign investors’ eye Publication Board M. İlker AYCI ✓ Bilal EKŞİ Industry evaluations Enise Didem ELMAS Mehmet Fatih BİLİCİ ✓ Turkey’s brands expanding to the world Mustafa KAMAR Senem SANAL SEZERER Furkan KARAKAYA

Prepare For Publications Executive Editor Selda YEŞİLTAŞ

Deputy Executive Editor Murat ERDOĞAN

Managing Editor Burak MERİÇ

Editor-In-Chief Peri Erbul

Editor M. Can EMİR, Ebru PAKSOY

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4 FEBRUARY 2020 ISSUE 79 The Turkish Perspective Editorial

İsmail GÜLLE Chairman of Turkish Exporters Assembly (TİM) Turkish Economy on Growth Trend Turkish economy is on the growing trend since the last quarter of 2019, attracting foreign investors

THE YEAR 2019 was not a negative influences, Turkey’s ment climate in Turkey is similar bright year for global economy exports increased by 2.04 percent to Europe and added, “European and trade as you all know. It is to reach 180.5 billion dollars in investors can invest in Turkey and forecasted that 2020 will not be 2019. When we consider that the be certain just like in any other nothing less than the previous first 50 countries that exports investments in Europe” assuring year. International credit rating the most have lost 2.7 percent investors. agencies have revised their on total exports, the strong Ruhsar Pekcan, the of forecasts downwards. performance of Turkish export- According to Trade, stated that there are some The agencies updated their ers shows that Turkey is such the forecasts of global firms that requested a forecasts on Turkey upwards, as a dynamic country with a high International meeting, which are considering in the economy is on the growing potential. investing in Turkey at Davos and trend since the last quarter of Turkey is a center of attention Money Fund (IMF) said, “General Electric, a compa- 2019. for western, notably EU, and and World Bank, ny that has already invested in 2020 Presidential Annual Pro- developed far east countries. Turkish economy Turkey, has requested a meeting. gram has set the growth target of Over 70 thousand foreign will grow 3.0 There are also meeting request Turkish economy for 2020 as 5.0 companies have investments from P&G and Alibaba.” percent. According to the forecasts in Turkey and the number is percent in 2020 Turkey will be the center for of International Money Fund rising. Recently automotive giant and 4.0 percent investment with its youthful (IMF) and World Bank, Turkish Volkswagen has decided to invest for 2021. population, geographical position economy will grow 3.0 percent in in Turkey and have established a and producing power. There is no 2020 and 4.0 percent for 2021. It company in Manisa. We foresee one that had trusted Turkey and can be said that Turkish economy that these Europe based invest- lose out. There are companies is on the growth trend once more. ments will carry on in 2020 that have invested and will keep Exports will play the leading role and thereafter. President of the investing in Turkey for a century, in this growth. European Economic Senate (EES) and there will be other companies Despite the difficulties and Ingo Friedrich said that invest- to follow. FEBRUARY 2020 ISSUE 79 5

First Glance The Turkish Perspective The number of ships passing through Bosphorus decreases, while tonnage increases

In 2019, 41 thousand 112 ships passed through Bosphorus, while 26 thousand 632 of the ships had harbour pilots.

BOSPHORUS, connecting increased. Less but larger ships in Bosphorus, one being in the the two continents, plays an started to cross Bosphorus. Bosphorus Region, and 141 ship important role in the trade of the Before the 2008 financial failures in 2019. Black Sea geography with the crisis, the number of ships 18 thousand 805 of the ships countries of the world, being a passing through the Bosphorus passed through Bosphorus world heritage of mankind. exceeded 50 thousand but due consisted of LNG, LPG, chemical Bosphorus, which hosts to the global crisis, the number and crude oil tankers. Those thousands of ships every of ships passing decreased due who used harbour pilots are year, scares Istanbulites due to the slowdown in trade. When generally such risky and large to occasional accidents and the trade started to increase ships. ship failures from time to time. again, bigger ships appeared on Considering that Bosphorus is made special with Bosphorus. While the number approximately 15 thousand of the ships that pass through as of ships passing through the the 41 thousand that passed well as the mansions, the ferries, Bosphorus has decreased by through Bosphorus docked into the bridges and the seagulls. 25 percent in the last 15 years, Turkish ports, it can be said that Although there has been the amount of cargo carried by Bosphorus is an important route a decrease in the number ships has increased by over 50 of world trade. of ships passing through percent. On the other hand, it was Bosphorus in the last 15 years, In 2019, 41 thousand 112 ships announced that 794 million the increased amount of cargo passed through Bosphorus, liras was earned in 2019 from carried is remarkable. This is while 26 thousand 632 of the lighthouse, rescue, pilotage because tonnages of the ships ships had harbour pilots. and tugboat services provided passing through Bosphorus has There were 15 ship accidents during transit ship transitions.

FEBRUARY 2020 ISSUE 79 7 Headlines

OECD to establish a regional office in Istanbul

Yılport, based in Istanbul, Yılport to operate Huelva for aims to be one of the top 10 container terminal 50 years with new investment operators in the world. YILPORT, which targets to be one of the top 10 container terminal operators in the world, will have the 50-year operating right by making new investments in Huelva Terminal in . The company’s ports in and the USA will also be operational this year. Yıldırım Holding’s port group, Yılport, invested in new ports, while focusing on expanding its existing ports. The company recently signed a new agreement at the Port of Huelva in Southern Spain last week. A new agreement was signed for the expansion of Huelva port at the end of negotiations between Yılport and the Port Administration (APH). In this context, it was decided to expand the south pier to 50 thousand squaremeters and to extend the pier wall from 750 meters to 1,250 meters. According to the joint plan, this expansion can be developed up to 300 thousand squaremeters for two years. In addition, it is aimed to develop intermodal facilities. “Turkey aims to export $190B in 2020” A REGIONAL office of the Organization for Economic Cooperation and Development (OECD) will be established in Istanbul, following the agreement signed on May 31 2018 in Paris, according to the announcement on Official Gazette of Turkey on January 2nd. HIGH-TECHNOLOGY products’ January 2019, added Gulle. The center will help rises in country’s overall Referring to interest rates, he expansion of methodologies exports, says head of Turkish said: “Turkey should reduce the such as OECD instruments, Exporters’ Assembly. interest rate to the single-digit peer assessments, peer Country’s exports, were at 30 level for sustainability.” learning and policy dialogue in TİM Chairman Gülle said billion dollars in 2000, reached Gülle underlined that the order to increase the capacity Turkey targets exports 180.5 billion dollars hitting a Turkish government always of regional programs and help worth of 190 billion dollars historical high last year, said head supported exporters and provided partners approach OECD in 2020. of Turkish Exporters Assembly for their needs. standards, including OECD’s (TİM) Chairman İsmail Gülle and Touching on economic main partners. added that Turkey targets exports issues in 2018 and 2019, he The center will further support worth of 190 billion dollars in said Turkey’s recovered in such existing regional initiatives by 2020. areas as its currency rate, CDS organizing appropriate events, İsmail Gülle also said the share risk premiums, interest rates, improving dialogue and of high-technology products is confidence index, foreign trade exchanging good practices. rising in the country’s overall and Borsa index. The agreement in this exports. He underlined: “Turkey regard between was signed in According to current figures, increased its exports while the Paris on May 31, 2018. exports this month rose 5% versus world narrowed last year.” 8 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

Turkish defense industry was represented by five companies in the “Defense News Top 100”, which is accepted as the world’s most prestigious defense industry list

Defense industry exports exceeds 2.7 billion dollars Turkish defense industry exports grew 34.6 percent to reach 2 billion and 741 million dollars, from 2 billion and 35 million dollars in 2018.

IN ORDER to reduce dependence on imported products and with TURKEY SIGNED 12 the support of the state, private DEFENSE INDUSTRY companies have led the industry AGREEMENTS WITH to significant progress since 2006. The market for the defense Industry and Technology and space sector grew 1.4 billion Minister Mustafa Varank dollars in the last 17 years. announced that 12 different Turkey’s largest defense agreements have been electronics company ASELSAN almost doubled with 710.1 million signed in the field of defense posted 1.8 billion dollars in dollars and 241 million dollars, industry, steps will be taken sales revenue, followed by respectively. The largest export of Turkey is strenghtening regarding the production of Turkey Defense Technologies 841.3 million dollars was made it’s position with it’s recent air, sea and land vehicles. Engineering and Trade with 564.8 in the North American free trade produced technologies. million dollars and Roketsan with zone, including the USA. Free trade zones were 522.8 million dollars. the most increased area as Exports to North American EXPORTS WILL INCREASE of percentage increase with Free Trade Area posted at 841 WITH NEW CONTRACTS 1174 percent, followed by million and 397 thousand dollars, The agreements signed in 2018 the Middle East with 128 while exports to Middle East were and 2019 for export in the percent and CIS with 104 at 710million and 144 thousand defense and aerospace industries, percent. dollars, followed by European especially in Pakistan, indicate Union member countries with 554 that exports will increase in the Defense and aerospace million and 959 thousand dollars coming years, due to contracts industry firms based in Exports to the Middle East covering the export of Turkish made approximately and CIS (Commonwealth of helicopters and warships half of the exports. Independent States) countries contracts. FEBRUARY 2020 ISSUE 79 9 Headlines

Historical record from Index rose to an all-time record by rising to 124 thousand 215 points. Borsa Istanbul

DESPITE the fall in global risk end the trade worries in global rate, which declined to 12 percent. appetite, Borsa Istanbul continued markets is also effective on pricing Industrial production, to rise, after opening over 120 in Borsa Istanbul. which has been on the rise thousand points on January 14 The global value gain of the after 12 consecutive months of for the first time since March dollar is another factor that contraction, has continued its 2018 and rose to an all-time high suppresses lira, but recent specific favorable trend since September with 124 thousand 536 points, on reasons have had a significant and increased by 0.7 percent January 25th. impact on sales pressure. monthly and by 5.1 percent While the “spring weather” On the other hand, it was annually in November. Similarly, has been blowing on the Borsa added that the Competition the economic confidence index Istanbul since November, the BIST Authority started a preliminary continued to rise. The economic 100 index has increased for the investigation for more than confidence index, which rose to 12th consecutive week. The index 20 banks in the elements that 9.8 in December, marked the best broke the record for the longest suppress lira. This concern level since July 2018. consecutive weekly rise, after persists, even though reduced Analysts noted that the seeing such a trend in 2009. after Minister Albayrak has said improvement in the industrial The main reason for that “there is nothing to worry production and economic enthusiasm in exchange markets Indexes that earn more about”. confidence index, as well as is low interest, while for Turkey than 10 percent since the The lowered its the decrease in interest rates, the reason is the expectation of a beginning of the year on policy rate to 11.25 percent with a strengthened the expectation of higher than forecast growth for index basis: 0.75 point discount, falling below investors on improved profitability this year and the recovery in the inflation for the first time in a as well as supporting the rally in overall economy. Tourism long time. With this move, aiming Borsa Istanbul. On the other hand, the worry Textiles to accelerate the recovery in the The analysts stressed that that the decrease in lira interest economy, front-end interest rate the residents in Turkey play an rates after the interest rate cuts ✓ Sport cuts continued to shrink. For the effective role in the rally in Borsa of the CBRT put the currency year 2020, the Treasury has 300 Istanbul and pointed out that in a disadvantageous position billion lira borrowing and 139 rate of foreign exchange swaps in is effective in selling pressure. billion lira budget deficit targets. Borsa Istanbul is at 61 percent, the Reviews of credit rating agencies Recalling that inflation has lowest level since 2005. for this concern are also in dropped to its lowest level since In terms of indices, tourism, a position that triggers sales December 2016 at 8.55 percent textile, informnatics and sports pressure. annually in November 2019, indices have been the most Analysts said optimism about analysts stressed that it has profitable indices with increasing trade negotiations between United become easier for the reels to spin more than 10 percent since the States and , expected to in the economy with the policy beginning of the year. 10 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

Turkey expects 1 million Turkish industry performs electric cars on roads by 2030 better than EU average OVER one million electric vehicles are anticipated to be on Turkey’s roads by 2030, according to Turkey’s Energy and Natural Resources Minister Fatih Dönmez. Country plans assessment on effects of one million TURKISH industrial charge points on its electricity production overtakes 23 distribution grid, Dönmez EU countries in November announced. Turkey’s industrial “By 2022 or 2023, we hope output in November to see our own indigenous 2019 was higher than the automobile on the roads,” said EU’s average in the same Dönmez. month. After the country launched While the EU average its first indigenous and electric was negative 1.3 percent, automobile prototype, the energy the index dropped by 1.5 ministry plans to assess the features, which means there percent in the eurozone, impact of one million charge needs to be a capacity of 50-100 while rising by 5.1 percent Turkey plans to install 1 points on the country’s electricity kilowatt-hours in the grid.” in Turkey, according to the million charging poinst for distribution network, Dönmez Therefore, fast-charging units data from official statistics electric cars added. located in the selected areas need offices, Eurostat and TOGG is currently working to have sufficient power supply TurkStat. with the ministry to determine to cope with this electricity Industrial production the optimum location for the requirement. in major EU economies, installation of fast-charging points “TOGG’s expectation from known as locomotive, in the country. the energy ministry is to include performed below Dönmez said, “These points not only the big cities in Turkey expectations. should be able to charge a car in but also other smaller cities in nearly 15-25 minutes, depending Anatolia where there is great on the car battery’s capacity and interest,” Dönmez added. Prisync raised an investment IFMIB increases its 2020 objective to 1 billion USD of 1 million euros PRISYNC, an ISTANBUL Hazelnut and the latest increase in production. e-commerce pricing Products Exporters Union (IFMIB) We are continuing our efforts to platform in Turkey, Chairman Ali Haydar Gören search for new markets in order to the Istanbul-based ranks first announced that IFMIB set its 2020 contribute to Turkey’s exports.” company is a venture amoung the EU export target to exceed over 1 Gören pointed out that nine out capital investment countries with billion dollars. of 10 countries Turkey’s exports fund managed by the 370 million IFMIB is starting its promotion hazelnut are European countries Collective Spark raised dollars. Followed plan for the Russian Federation, and added, “In recent years, 985 thousand 700 euros by Italy with 335 which was identified as a priority as a result of the promotional in a seed round. million dollars target market after Europe. IFMIB activities, there is a continuous With the new funding, and with delegation has planned various increase in our exports to China. Prisync wants to double 115 million activities to introduce Turkish We ended the year with the export its customer acquisition dollars. hazelnuts in Russia of over 700 million dollars. In channels and tactics Gören reminded that Turkish 2020, our goal will be to increase it has tested and hazelnut opened the gap between our exports to over 1 billion verified in the past. The its competitors by increasing dollars.” Istanbul-based Prisync its production in 2019 and initiative, founded in added, “While production of our 2013, has customers in competitors decreased in 2019, more than 50 countries. we have managed to increase The company offers our production to 776 thousand a pricing solution for tons and our share in the world to e-commerce companies 69 percent. We are currently the that allow them to track market leader in the production competitors’ prices and and export of hazelnuts. We optimize theirs. strengthened our leadership with FEBRUARY 2020 ISSUE 79 11 Headlines

End of compulsory sale welcomed by the exporters As the removal of the obligat of selling at least 80 percent of the export prices to the banks with a new notice pleased the exporters.

THE NOTICE, which amended demands from exporters, the records. Due to the global and the export prices, related to the abolition of the requirement of regional economic and political decision no. 32 on the Protection selling at least 80 percent of the developments, our firms, which of the Value of the Turkish İsmail Gülle, “As export prices was welcomed by will receive export from the Currency and published in the the exporters. Gülle added, “It was countries where export companies Official Gazette on December workers in the an important step to allow the have difficulty in making their 31, 2019, was welcomed by the field of Turkey’s deposit of a currency other than payments, have gained flexibility exporters. With the notice, if the trade diplomacy, the foreign currency specified in due to their rightful position. maturity of the collection in all our work is the export declaration to the bank. Our exporters, who facilitate export transactions is more than This step undoubtedly makes it operation in a country that has 180 days, it will allow the export aware of how easier for our exporters to collect an inadequate banking system, price to be deposited within important every export prices. Another important believe that easing the processes 90 days after the expiry of the dollar we give to step is to allow the exporters who of depositing export prices in maturity period and will allow a cannot stay in the country for banks from underdeveloped different foreign currency to be our country, we any reason, except for the force countries will affect Turkey’s deposited in the bank. continue with the majeure conditions, and who export capability in a positive same acumen and were unable to bring the export direction. “ POSITIVE WELCOME price partially or completely to İsmail Gülle, “We are grateful Evaluating the notice the Turkish energy.” the country so that the amounts that the incentives to exportation Exporters Assembly (TİM) can be abandoned by the tax provided by our state will continue Chairman İsmail Gülle said that authorities if they certify their to increase regardless of the global the consideration of the intense legitimate reasons with official economic conditions.” 12 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

Consumer Price Index rose Turkey near 6 gigawatts by 11.84 pct. in December in solar energy Consumer price index (CPI) increased by 11.84 percent annually and 0.74 percent monthly.

IN DECEMBER CPI rose by 0.74 percent compared to November, 11.84 percent compared to the December of the previous year, and 15.18 percent on the twelve month average basis. In the last month of the year TURKEY’S solar power the lowest annual increase of generation capacity main group was 3.16 percent has increased to 5,995.2 in communication followed by megawatts as of clothing and footwear with 4.53 December 2019 percent, recreation and culture According to the data with 7.03 percent and furnishing announced by Turkey and household equipment with Electricity Transmission 9.79 percent. Company (TEİAŞ), the The highest monthly decrease Items indicating highest monthly decrease are, lemon with 6.09 Minister of Treasury and increase in 2019 was in the main expenditure groups 932.3 megawatts. were 1.91 percent in clothing percent, men’s pullover with 6.27 Finance percent, leek with 8.43 percent said, “We have ended the However, the total and footwear and 0.11 percent in power generation recreation and culture. and orange with 18.58 percent. year below the 12 percent Minister of Treasury and target.” capacity increased by In December the average prices 2,716.2 megawatts in of the 418 items in the index, the Finance Berat Albayrak stated that the campaign against inflation 2019, reaching 91,267 prices of 131 items decreased and megawatts. the prices of 34 items remained will be one of the main agendas of unchanged while the average 2020 and added, “We have ended prices of 253 items increased. the year below the 12 percent target.” OYAK to establish carbon black plant in Turkey 11.2 billion dollars of exports from electronics with Taiwanese CSRC OYAK, Turkey’s largest TURKEY made 11 billion 242 Middle East with 1 billion 486 occupational pension million 645 thousand dollars million 94 thousand dollars and fund, has started to of exports last year in power African countries with 920 million Electronics is one of the work on establishing a electronics field. The most exports 354 thousand dollars. five sectors that the carbon black production in this sector were made to the Turkey increased its electronics Ministry of Industry and facility with collaborating European Union, Middle East and exports to CIS countries by 22.08 Technology of Turkey with the world’s sixth- African countries. percent and by 4.7 percent incentivizes. largest carbon black According to to Middle Eastern manufacturer, Taiwanese the compilation countries. In company Continental of data from this context, Carboun owned by Turkey 883 million the CSRC International Exporters 27 thousand Investment Holdings Co. Assembly, dollars of Ltd. Turkey exports were With the project exported made to the to be implemented in 105 billion Commonwealth İskenderun, the annual 561 million 315 of Independent requirement of 220 thousand dollars of States. thousand tons of carbon finished products in 2019. black will be met. Carbon Most exports in this area were ISTANBUL LEAD THE EXPORTS black, mainly used in made to the European Union (EU) Last year, 5 billion 845 million vehicle tires as well as countries. 6 billion 541 million 688 thousand dollars of foreign many different fields, 860 thousand dollars of electrical sales of electronics were made has a domestic market and electronic products were from Istanbul, corresponding to volume of 260 million exported to EU countries. The EU approximately 52 percent of the dollars. countries were followed by the total exports in this field. FEBRUARY 2020 ISSUE 79 13 Headlines

Mckinsey: Artificial Intelligence to create 3.1 million jobs in Turkey

We are on the verge of a new digital era where technologies not only do what we think people can do, but also do it better than people do.

service economy and investment growth by 2030.

KEY FINDINGS OF MCKINSEY’S REPORT: l Automation, AI and digital technologies are playing an important role in our lives and with these technologies, an improved level of prosperity and a better life for everyone can be achieved. l In Turkey, automation, AI SUGGESTIONS and digital technology, leads to changes in behavior and daily Companies and unions: habits of an average person. This l Strategic workforce plan effect increases with economic l Talent transformation and social changes. programs l Automation, AI and digital l New business models WHILE the pace of development technology, although eventually of automation, artificial to increase the productivity in Public enterprises: intelligence (AI) and digital Turkey, may cause for some jobs l Geographical / sectoral technologies varies in different to be lost. Consisting of new strategic workforce planning countries, Mckinsey’s research jobs along with the growth of l Development and shows that the adoption of these investment growth and service technology centers technologies can affect 50 percent economy, AI has 3.1 million job l Accelerators and incentives of the world economy. growth potential until 2030. Existing technologies around l AI plays an important role in in Educational institutions: the world will allow 50 percent the transformation of workforce l Updating the training of the work to be done with competency and development in model automation. More than one-third Turkey and gaining competence l Improving the learning of the work done in 60 percent for new professions. experience of the professions in Turkey l The workforce will need to gain l Lifelong learning can be automated with existing stronger social competencies and technologies. develop advanced technology Individuals: Even though automation, competencies. l Continuous learning and artificial intelligence and digital l To implement Turkey’s self-development technology may cause some jobs transformation, as all relevant l Social and technological to be eradicated Turkey, it has the stakeholders, there should be a competencies potential of creating 3.1 million collaboration in the initiatives on jobs, along with the growth of business models for the future. 14 FEBRUARY 2020 ISSUE 79 Outlook The Turkish Perspective

Prominent Sectors of 2020 According to Audit Firms

Deloitte Private Turkey Leader Head of Advisory, KPMG Turkey Ali Çiçekli Müşfik Cantekinler

2020 May Issue Investment Appetite New Unicorns to Increase in 2020

DELOITTE’S merger and acquisitions report, published AS KPMG Turkey, we maintain our optimistic in the second week of January, summarizes not only the view regarding 2020 and expect the investment sectors that are particularly interesting for the investor appetite to increase which has lost its momentum in 2019, as well as providing important clues about the compared to prior years in 2019. The main driving promising sectors for the investor in 2020. According to factors of the expected recovery in 2020 are; the this report in 2019, despite declining business volume low interest rate policy of the central banks, the of our country, 64 percent of both monetary and unit- foreign currency valuation of Turkish assets based transactions attracted foreign investment in Turkey being below the historical averages, improvement suggest the potential of attracting investment in Turkey. In of the main economic indicators as well as the light of these data, it can be foreseen that three sectors measures announced within the scope of the New will come into the forefront in 2020. Economic Plan. We expect the companies with The first of these is Fintech (financial technologies). export oriented high growth, diverse geographic Especially with the new regulations made by the Banking area, distinctive technology and high level of Regulation and Supervision Agency (BDDK) in 2019, it accumulated know-how are most likely to achieve can be thought that the companies operating in this field higher valuations and to increase the overall M&A will rise in 2020 in our country, in line with the global volume in Turkey. markets, while establishing a legal basis that paves the In light of our expectations, we anticipate way for the activities of payment services and electronic the industrial manufacturing and automotive, money systems in our country. The expectations of key energy and natural sources, technology, media global market players entering the Turkish market in and telecommunication sectors to stand out as 2020 supports the argument that it is is an open field for preeminent sectors which will more likely to favor investors. from the increasing level of investor appetite and The second promising area is the “startup” ecosystem. M&A volume. In addition, Quickly developing startups in our country is another field (TWF)’s anticipated investments in petrochemical, that attracts the attention of investors. Venture capital mining and power generation and the merger investments and angel investors, which constitute 30 of public insurance companies under the TWF, percent of the total number of transactions in 2019, show and the commencement of sales processes for that startups will be the focus of interest in the upcoming the companies transferred to the Savings Deposit period. Insurance Fund (SDIF) are among the factors to The third area that is also important is family increase the transaction volume within 2020. companies and private businesses operating in the production sector, which has a strong export infrastructure and potential. Similar to 2019, it is not difficult to foresee that the promising business model and the companies with high financial performance will be the center of attention for small and medium sized companies. In terms of medium-sized companies, the chemical and transport sectors are two areas that will stand out.

FEBRUARY 2020 ISSUE 79 15 Export

2019 exports reach to a record level of 180.5

Despite the difficultiesbillion in global trade, dollars a new Turkish Republic history record was reached with 180 billion 468 million dollars in exports. Our exports in 2019 increased by 2.04 percent compared to the previous year and amounted to 180 billion 468 million dollars, said Commerce Minister Ruhsar Pekcan.

16 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

DESPITE all the problems in December, resulting the foreign 632 million liras were as exports global trade, a new historical trade deficit to increase by 127.4 and 6 billion 728 million liras export record was posted in 2019 percent to 4.72 billion dollars. were as imports. with 180 billion 468 million The export/import coverage dollars, Turkish Exporters ratio posted 85.8 percent in 2019, TİM CHAIRMAN Assembly (TİM) Chairman İsmail increasing from 76.5 percent in GÜLLE: RECORD Gülle and Trade Minister Ruhsar 2018. EXPORT LEVELS Pekcan announced. DESPITE Pekcan said, “According to the MOST EXPORT TO GERMANY DIFFICULTIES AND General Trade System (GTS) data, In December, products were SLOWDOWN our exports in 2019 increased exported to 206 different In his speech at the Foreign by 2.04 percent compared to the countries; Germany, and the Trade Assessment Meeting TİM previous year and amounted to were the most Chairman İsmail Gülle said, 180 billion 468 million dollars. exported countries respectively. despite the difficulties and the Our imports decreased by 8.99 The Russian Federation, Automotive slowdown in global trade Turkey percent to 210 billion 394 million Germany, and China were industry was the has crowned its new record levels dollars. Our foreign trade deficit the first three countries most first among the of exports with a historic high in decreased by 44.9 percent. Our imports were made from. 2019. foreign trade deficit, which was In December, exports to sectors in total Gülle emphasized, “When 54 billion 323 billion dollars in Iraq increased by 15.75 percent exports with 30.6 we look at exports by country 2018, decreased to 29 billion compared to the same month billion dollars, groups, European Union ranks 926 million dollars by the end of of the previous year, while the as our largest market with 44.3 2019.” exports to United Kingdom followed by percent share. Share of Middle Pekcan said, “Foreign trade decreased by 4.44 percent. On the chemicals and Eastern countries up by 6.0 made a record contribution of other hand, exports to France, chemical products percentage points to 21.5 percent 4.7 points to growth. This is which is among the countries sector with 20.6 and the share of European the largest contribution to the Turkey exported most in countries increased by 4.5 country’s foreign trade growth December, and Spain increased billion dollars and percentage points to 7.6 percent.” seen in 18 years in Turkey. We by 10.3 percent and 6.1 percent apparel exports Gülle stated that exports supported the economy with 3.2 respectively. with 17.7 billion increased by 4.87 percent to billion liras in 2019. This is the 15 billion 385 million dollars largest export support figure in TURKISH LIRA WAS USED IN dollars. in December and added, “We the history of the Republic. In EXPORTS TO 179 COUNTRIES have reached the highest export 2020, we will raise it to 3.8 billion As of December, the number of figure of December in the liras”. countries where Turkish Lira in December used on export transactions 2019, leaving behind the export EXPORTS UP BY 4.87 PERCENT rose to 179, while the number figure of 14.7 billion dollars IN DECEMBER of countries that Turkish Lira in December 2017. Despite According to the GTS, exports was used in import transactions the difficulties in the global rose by 4.87 percent to 15.39 was 110. The total amount of conjuncture and the slowdown billion dollars, while the imports foreign trade in Turkish Lira in in global trade, we broke rose by 20.05 percent annually December was 11 billion 361 the historical records of the to 20.11 billion dollars in million liras, of which 4 billion Republic again in eight of the 12 months. Our annual exports have reached 180 billion and Exports increased by 468 million dollars to a new 2.04 percent to 180 record high.” TİM ASPIRES DOMESTIC CAR billion and 468 million Reminding the introduction of the domestic car Gülle said: dollars in 2019, setting “We want to see our domestic car, which we admire in every a historical record. sense, on the roads in 2022, and we promise that we already aspire to 300 vehicles in order to convert all of the duty vehicles connected to TİM and our exporter unions into domestic and national cars. As the export family, we’re excited to be able to export our domestic car. We anticipate that we can save up to Imports decreased by 10 billion dollars by reducing our dependence on imports in the 9 percent to 210 billion energy sector. We are also excited to see the domestic car exports’ and 394 million dollars. contributions to the “Foreign FEBRUARY 2020 ISSUE 79 17 Export

Turkish Airlines transports to 126 countries and helps Turkish exporters getting access to the world with it’s fleet of 350 planes, 24 of which being cargo planes.

Trade Surplus goal of Turkey.” dollars with a 7.8 percent Providing information on increase respectively. exports on a provincial basis, THE AUTOMOTIVE SECTOR Gülle said, “The top five HAS THE FIRST PLACE MOST EXPORTS TO GERMANY provinces that exported the Conveying the details of the In December 2019, the top five most were Istanbul, Kocaeli, export figures in December, Gülle exporters were Germany with Bursa, Izmir and Ankara. The said, “We see that our automotive 1.29 billion dollars, Iraq with most remarkable increases sector has ended the year in the 969 million dollars, the United were Yalova, increasing its first place in December with 2.5 Kingdom with 885 million exports fivefold, Şırnak’s exports billion dollars. The automotive dollars, the with increased by 55 percent and sector was followed by the 765 million dollars and Italy Çankırı’s exports increased by 53 chemicals sector with 1.3 billion with 749 million dollars. The percent.” dollars, the steel sector with five countries Turkey’s exports Gülle noted that there is a 1.1 billion dollars and electric- increased by most are Yemen strong increase in the export electronics sector with 978 by 177 percent, Oman by 171 value and added, “Our export million dollars.” percent, 157 percent, and volume increased by 3.8 percent Gülle said that Turkey’s EU Norway, Slovenia by 72 percent in December and amounted to exports of information that and Turkmenistan by 67 percent. 12.2 million tons. The increase the 6.8 billion dollars range Gülle said, all the action taken of 4.87 percent on value basis and added, “We see that we do by the principle win-win has shows that we achieved a export 8 billion dollars together contributed to Turkey’s exports significant performance in terms with other non-EU European and pointed out the benefits of of added value in December. Lira countries.” the Free Trade Deals signed with exports reached 4.6 billion liras Gülle added that the EU countries such as , Egypt, from 179 different countries in followed by the Middle East Morocco, Georgia, and South December. The loss caused by countries African countries Korea. the euro-dollar parity was in the where exports amounted to 3.3 range of 172.5 million dollars billion dollars with an increase YALOVA’S EXPORTS in December, while it was 4.6 of 16.2 percent, and 1.6 billion INCREASED THE MOST billion dollars in 2019.” 18 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

EXPORTS TO OVER 40 exporters increased by 9.3 cooperations.” COUNTRIES percent, Gülle said and added, Turkish exporters have Gülle underlined that the “Our export family grew each 2020 GOALS exported to 206 different number of contries exporting month with the participation İsmail Gülle pointed out that countries in December. over 1 billion dollars was 40. of approximately 1,500 new the objectives for 2020 were Furthermore he added that 18 companies. According to our implementing the strategies to provinces in Turkey exported records for the first time this be applied for target countries over 1 billion dollars is 18. year, 17 thousand 544 companies and the industry and to improve Pointing out that Trabzon started exports and reached the the brand perception of Turkey participated among the cities export figure of 4 billion 345 to conduct several studies for the that succeeded to exceed the million dollars.” development. 1 billion dollar threshold last Gülle pointed out that they Stating that they will year, Gülle said, “We want to attached great importance to implement a digital platform focus on the provinces that increasing market diversity in 2020 in which exporters can exceed 1 billion dollar threshold last year and added, “The share easily access standardization and support them with raising of the EU, our biggest market, and certification information awareness on exportation and was 48.8 percent despite the related to all target markets open Eximbank branches. Brexit process, while the share in cooperation with Turkish Gülle stated that 23 sectors of Middle Eastern countries in Standards Institute, Gülle said exceeded 1 billion dollars exports increased by 4.5 points that they will continue to take threshold last year, and added to 19.3 percent. The share of steps to encourage businesses to that ship and yacht sector African countries increased increase their exports. exports increased by 5.2 percent by 0.4 percentage points to Gülle ended his speech by and exceeded 1 billion dollars 9.2 percent, especially in the saying, “We will carry our flag limit. Chinese market, both in Beijing in every corner of the world all 2019 and in China Import Fair, throughout the year, and will 17 THOUSAND 544 COMPANIES we exhibited Turkish export work for foreign trade surplus SAID STARTED EXPORTING products with large scale target. We are going to bring our Last year, the number of participation and launched new exports to a better place in 2020.” FEBRUARY 2020 ISSUE 79 19 Export

THY awarded as Turkey’s top service exporter (THY), SunExpress and Pegasus awarded as Turkey’s top service-exporting companies across Turkey in Turkey’s 500 Top Service Exporters Award Ceremony.

THE AWARD ceremony, organized moving forward with this goal. 500 Top Service Exporters by TİM was attended by President Both products and services are Research were presented with Recep Tayyip Erdoğan, Minister part of this goal. In this period, their awards. Turkish Airlines of Treasury and Finance Dr. which we are moving at the level ranked first in the gradation, made Berat Albayrak, Minister of Trade of 200 billion dollars in exports, accordingly with 2017 figures. Ruhsar Pekcan, Minister of we attach a special importance to Gülle said “Turkey’s growth, Family, Labor and Social Services service exports in our strategies employment and added value are Zehra Zümrüt Selçuk, Minister Gülle, “Turkey’s for the future. entrusted to us, the exporters” and of Culture and Tourism Mehmet growth, Turkey’s 500 Top Service mentioned that service exports Nuri Ersoy, Minister of Industry employment and Exporters Award Ceremony, progressing by the leadership and Technology Mustafa Varank organized by Turkish Exporters’ of the president. Saying that and Ministry of Transport and added value are Assembly with the participation they believe that İstanbul Grand Infrastructure Mehmet Cahit entrusted to us, of Ministry of Economy, was Airport will contribute to Turkey’s Turhan. the exporters” held for the third time with growth by interconnecting 60 Turkish Exporters Assembly the participation of President countries and economies of 20 (TİM) Chairman İsmail Gülle, who Recep Tayyip Erdoğan. The top trillion dollars. made a speech in the ceremony, 10 exporting companies across Gülle pointed out that TİM said “Our goal is ‘Turkey with Turkey and first 3 companies from is moving forward to the goal, foreign trade surplus’ and we are 17 sectors according to Turkey’s “Turkey with foreign trade 20 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

Gülle: Our goal is ‘Turkey with foreign trade surplus’ and we are moving forward with this goal. In this sense, in the export of both goods and services, we are moving forward with this goal.

Top 10 Companies in Service Export: l Türk Hava Yolları Anonim Ortaklığı l Güneş Ekspres Havacılık A.Ş. (SunExpress) l Pegasus Hava surplus” and added, “ In this “NO STOPPING, WE WILL Taşımacılığı A.Ş. sense, in the export of both goods CONTINUE TO RUN BY TAKING l and services we are moving RISKS” Ekol Lojistik A.Ş. forward with this goal. In this l Gap İnşaat Yatırım ve period, which we are moving to Stating that if the big goals were the level of 200 billion dollars not set, the steps would be small, Dış Ticaret A.Ş. in exports, we attach a special Gülle said: l Tav Havalimanları importance to service exports in “We do not have the luxury to our strategies for the future. Our continue with small steps. In fact, Holding A.Ş. system is established to register we do not have the luxury to walk. l Rönesans Holding A.Ş. our goods exports. We also need As Mr. President said many years l to establish this system for our ago, ‘No stopping!’ We will run and Netlog Lojistik service exports and transit trade. we will run by taking risks. We Hizmetleri A.Ş. Based on this; in order to be able have to make the breakthrough l to register services exports, transit run. For this reason, we have to Odeon Turizm trade and e-exports as soon as implement all of it, whatever the İşletmeciliği A.Ş. possible, we continue to work with civilization has ordered: high l our Minister of Trade, Mrs. Ruhsar value added, brand, design, R & D, Atlasjet Havacılık A.Ş. Pekcan.” innovation .” FEBRUARY 2020 ISSUE 79 21 Investment

FDI Spotlight in Turkey

Turkey has jumped up 10 places and ranked 33rd in the World Bank’s Doing Business 2020 Report. This remarkable increase serves as a reference for Turkey’s investment potential. Turkey attaches great importance to foreign direct investments for its economic development and believes that four of the main reasons to invest in Turkey include the ongoing successful economic reforms to support the inward investment proposition, having unique and strong market fundamentals, being an international hub for key sectors, and benefiting from a modern economy supported by a young and educated population.

FDI Inflows Number of Foreign FDI Inflows (USD Billion) (USD Billion) Companies in Turkey

Poland 51 Poland 224 217 74,200

Czechia 38 Turkey 217

Hungary 36 Czechia 97

15 5,600 Turkey 13 Hungary 53 1973-2002 2003-2019 1973-2002 2003-2019 1990-2002 2003-2019 (30 Years) (17 Years) (30 Years) (17 Years)

FDI Inflows (USD Billion) 2500 25 World ($ Billion, LHS) 2000 Turkey ($ Billion, LHS) 20 1500 15

1000 10

500 5

0 0 2011 1991 2017 2013 1997 1993 2015 2012 1992 2018 1988 1995 2014 2016 1989 1998 1994 1996 1999 2001 2010 1990 2007 2003 2002 2005 2008 2004 2006 2009 2000

22 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

Turkey’s Ranks 33rd in World Bank Doing Business Reports

100

80 80

60 69 60 40 43 20 33 0 2017 2018 2019 2020

Construction Others Transport & 3.1% 8.4% Other Storage 1.1% 4.5% Asia Finance Wholesale & 33.7% 21.5% Retail Trade 6.4% Information & Communication USA Services 8.8% 8.1% EU Energy 68.6% 11.7% Manufacturing 24.1% Geographic Breakdown of Sectoral Breakdown Investments of Investments (2003-2018) (2003-2018)

2.4

0.9 Turkey’s Share in 0.7 Global FDI (%) 0.2 1990-2002 2003-2018 Share in Global FDI Share in FDI flow to Developing Economies

FEBRUARY 2020 ISSUE 79 23 Investment

TURKIYE HOUSE SHINES OUT sessions, ministers also met with AT DAVOS leading figures of the business FDI News in January The 50th world as part of WEF 2020. Annual Meeting 2020 was held Minister Berat Albayrak spoke ISTANBUL based grocery on January 21-24 in Davos, at the “Shaping the Global Growth delivery startup GETIR has . The Investment Agenda” panel at the forum and secured USD 38 million Office and Turkey Wealth Fund acknowledged the audience on ‘’Series A’’ funding from held bilateral talks at the Turkiye Turkey’s growth targets and a group of Silicon Valley House in Davos with distinguished economic performance. Also, venture capitalists, providing a participants of the forum. visiting the Turkiye House, Albayrak boost to Turkey’s tech scene. Minister of Treasury and said that the Investment Office, the Finance Berat Albayrak, Minister of Turkey Wealth Fund, the Finance A consortium of six Chinese Foreign Affairs Mevlüt Çavuşoğlu, Office and executives of the Istanbul companies—the Chinese and Minister of Trade Ruhsar Financial Center held one-on-one highway company Anhui Pekcan represented Turkey at and bilateral talks with related local Expressway, China the forum. As well as attending and foreign groups at the House. Merchants Expressway Network & Technology, CMU, Zhejiang Expressway, INVESTMENT Arda Ermut gave an Jiangsu Expressway and OFFICE address on growth Sichuan Expressway-are TAKES STAGE prospects for Turkey to buy a majority stake in AT EMPEA and on the recent Turkey’s ICA Construction, a GLOBALTURK developments in private joint venture between Turkey’s PRIVATE EQUITY equity in the country. IC Ictas Construction and EVENT He stated that private Italy’s Astaldi, for USD 688.5 The 4th Annual equity and venture million to participate in a Executive Briefing capital companies Turkish expressway project. on Private Equity were quite active in in Turkey and Turkey in 2018 and Danish wind turbine Environs took three of top ten venture internals producer Resolux place on December capital-backed exits in Group and Turkish industrial 5, 2019 in Istanbul. Europe were Turkish. manufacturer Bayramoğlu Jointly organized “We believe that private have established Resolux by the Emerging Markets Private equity will make a significant Turkey, for the production of Equity Association (EMPEA) and contribution to our endeavors to internal turbine components Globalturk Capital, the event attract investment into Turkey. in Turkey. The joint venture brought together private equity This is because private equity is a will primarily focus on executives from around the globe. major source of FDI in the world, exports, with plans to sell to Investment Office President as well as in Turkey,” said Ermut. the domestic market as well.

24 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

INVESTMENT OFFICE compiled from the 78 Italian Ermut. ATTENDS BUSINESS MEETING companies operating in Turkey Ermut also spoke to IN ITALY in the November-December 2019 participants about Turkey’s Investment Office President period. strategic location, fiscal system, Arda Ermut attended a business Commenting on the survey legal system, macroeconomic meeting in Italy on January results, Ermut said that 9 out of 10 policies, geostrategic risks, 20th, organized by Italian law Italian companies are pleased to and relations with the US and firm Grimaldi Studio Legale and invest in Turkey. “It is encouraging EU. Turkish Ambassadors to independent and non-profit to get such positive feedback. We Rome and Vatican Murat Salim think tank CeSPI. The meeting hope that this trend will continue Esenli and Lütfullah Göktaş also showcased the survey results to improve moving forward,” said attended the meeting.

INVESTMENT OFFICE JOINED TEKNOFEST MEETING IN GAZIANTEP Plans for the third edition of TEKNOFEST Aerospace and Technology Festival, organized by the Turkish Technology Team Foundation and the Ministry of Industry and Technology, Teknofest 2020, were unveiled during a meeting held in Gaziantep Zeugma Museum on January 20. Furkan Karayaka of the Investment Office joined the launch meeting. Turkey’s most extensive festival covering aerospace, space, and technology events, TEKNOFEST lasted 6 days in 2019 and boasted attendance of 1.7 million tech-focused people from various global and domestic companies, universities, and public institutions.

FEBRUARY 2020 ISSUE 79 25 Focus

Foreign investors generated 64 percent of Turkish M&A market deal volume

Turkish market saw a total M&A deal volume of around 5.3 billion dollars in 2019, through 233 transactions. Foreign Deal Number investors generated 64 percent of the total annual deal volume.Azerbaijan Switzerland Spain 3 3 3

FOREIGN investors made a Deal Number UAE 6 3 solid contribution to the annual Azerbaijan GermaSnwyitzerland Spain 3 deal volume once more at 64 8 3 3 percent while the share of foreign Turkey Foreign UAE Investors Japan investors in the total annual deal 162 Franc6e 3 number was limited at 30 percent 71 Germa8n y Other 8 19 with 71 transactions. Turkish Turkey Foreign UK 8 investors generated an annual 162 Investors France USA deal volume of 1.9 billion dollars, 71 8 Other 10 including estimates for undisclosed 19 UK values, with 162 transactions 8 and comprised 36 percent and USA 70 percent of the total annual 10 deal volume and deal number, respectively. While small and middle market Foreign investors had transactions dominated the overall Deal Value (Disclosed; US$ million) 64 percent share of the Qatar M&A activity in 2019, the ten annual trade volume with 23% largest transactions – based on 71 transactions in 2019. disclosed values – comprised 50 Deal Value (Disclosed; US$ million) percent of the total annual deal QaUtaSrA Turkish Foreign China 2311%% volume. 212 transactions each with Investors Investors 31% a deal value less than 50 million 34%(*) 66%(*) dollars, which accounted for 91 USA percent of the total deal number, Turkish Foreign China 11J%apan Investors 31% represented 28 percent of the Investors 11% 34%(*) 66%(*) total deal value. The acquisition Other 8%Japan of Third Bosphorus Bridge and 11% Northern Marmara Motorway by South Korea 11% 5% China Merchants Group was the Netherlands (*) 36% Turkish Investors / 64% Foreign Including estimOatehse fror deals with undisclosed values. largest transaction of the year with 8% 11% FEBRUARY 2020 ISSUE 79 South Korea 26 5%

(*) 36% Turkish Investors / 64% Foreign Including estimates for deals with undisclosed values. The Turkish Perspective

a disclosed deal value of 688.5 services. Technology with 48 firms, percent. European investors once million dollars and alone comprised internet & mobile services with again took on the lead with 43 deals 13 percent of the total annual 32 firms and energy with 24 firms exceeding a total value of 1.3 billion deal volume. Also, the transaction ranked first as the most targeted dollars, comprising 61 percent and whereby Koç Holding increased sectors. making 45 percent of total 40 percent of foreign investors’ its stake in Yapı Kredi Bankası for annual deal number. total deal number and volume, a consideration of 402.6 million Although global economic respectively. On the other hand, dollars was the largest transaction uncertainties and geopolitical investors from Asia Pacific and Gulf involving a Turkish investor. headwinds are likely to persist in regions concluded the year with In privatization landscape, the 2020, the Turkish market offers 12 deals and 6 deals, respectively, operating rights of the national strategic opportunities to investors together made up 50 percent of lottery company (Milli Piyango) and we expect the Turkish M&A foreign investors’ total annual deal and the sports betting company activity to pick up in a rebalancing volume. In line with previous years, (Spor Toto İddaa) were transferred environment. investors from USA and the UK to private sector companies on Foreign and Turkish investors were at the top of the list in terms of the basis of revenue sharing, generated 64 percent and 36 deal numbers, followed by French, through tenders held by Turkish percent of the total annual deal German and Japanese investors. Wealth Fund (TWF) and by Spor volume (including estimates for On another note, there were some Toto Organization, respectively. undisclosed values), respectively, foreign investors who increased In addition, the Savings Deposit through making up 30 percent their stakes in their Turkish Insurance Fund (SDIF) conducted and 70 percent of the total annual subsidiaries, as well as a few others a single transaction, involving deal number, respectively. Foreign who exit their investments in with a deal value of 60 investors were involved in 71 Turkey. million dollars. transactions amounting to 3.4 In 2019, financial investors M&A activity was spread-out billion dollars, while Turkish The top ten largest engaged in 87 transactions worth across historically active sectors, investors generated a total volume transactions composed approximately 900 million dollars. including technology, internet of 1.9 billion dollars through 162 49.05 percent of the total Foreign investors were involved & mobile services, energy, deals. transaction volume in 71 transactions amounting to 3.4 manufacturing, e-commerce, food Foreign investors contributed to billion dollars. & beverage, chemicals and financial the total annual deal volume at 64

FEBRUARY 2020 ISSUE 79 27 Interview - Business World

The Power Symbol of Turkey: Jewelry The global luxury consumer market has exceeded 1 trillion dollars, one quarter of which is constituted by the top 100 consumer brands. Even though there is no company from Turkey in the Top 100 list, Turkey is on the radar of private buyers of luxury brands in some consumer products. Super yachts and jewellery are at the top of these product groups.

TURKEY is one of the top four Şirin, creator of Bee Goddess. growing by 9 percent in 2019, countries that recieves the most The use of diamonds and Bain & Company anticipates luxurious yacht orders. On the jewels that belong to jewelery that the luxury customer base will other hand, Turkish brands in designer Sevan Bıçakcı was expand to 450 million people by the ready-made clothing and another detail that showed the 2025, up from 390 million people cosmetics sector, which continue popularity of the country brand in 2019, mainly thanks to the to go retail worldwide, are shown in the movie Oceans8, released growing middle-class, especially as the closest candidates of the top in 2018, which was about a big from Asia. 100 list. Another luxury product necklace heist. Turkey has various strengths group that is driving Turkey brand According to Bain & Company’s in luxury tourism such as the forward is jewellery. “Worldwide Luxury Study 2019” manufacturing on wedding The designs that come from the worldwide luxury market grew dresses, yachts, jewellery, and the masters who grew up in 4 percent in 2019 to 1.3 trillion luxury hotels that are actively ancient lands that hosted different euros with an overwhelmingly hosting and seven more to be civilizations for centuries, are in positive outlook that is prevailing constructed between 2020 and the first place in the jewelry choice over concerns about global 2022. of developed countries, especially instability. the USA and Japan. The number The insatiable drive to travel is JEWELLERY: A of world-famous names among one of the reasons luxury travel 5,000-YEAR-OLD buyers is also quite high. executives believe that 2020 will HERITAGE While the world renown pop be another banner year for the Jewellery being one of Turkey’s artist Madonna introduced her segment. cultural heritages with its history single Medellin, she appeared The core personal luxury of more than 5,000 years is before the press by wearing a goods segment achieved 4 percent contributing the “‘Turkey with necklace of talisman jewelry growth at exchange rates and foreign trade surplus” goal also designer Ece Şirin. Cate Blanchett, reaching 281 billion. When presents opportunities to foreign Kate Winslet, Beyonce and it comes to categories within investors. Rihanna are among the celebrities personal luxury goods, jewelry The jewellery sector holds who prefer the designs of Ece stand out as the outperformer, a place in the cultural heritage 28 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

Turkey’s strengths Visa easements Accessibility Easy terms of incorporation Largest jewelry inventory in the world Turkey aims to be a trade and stone cutting center of region

The craft of jewellery has been regarded as among the most eminent occupations down through the ages.

of Turkey. Being fostered by Kuyumcukent, one of the Jewelry from Sevan precious stones’ import, Turkey’s the many civilizations such as most distinguished production Bıçakçı’s collection, used in ability to use her advantages Lydian, Hittite, Macedonian, compounds in the world, fosters the movie Ocean’s 8 becomes possible. It is foreseen Greek, Roman, and Ottoman that more than 1,000 producers in one that Turkey is going to be the existed in the country, the craft site and employs 20,000 people. world’s new stone center because of jewellery has been regarded The company whose production of advantages over Israel and as among the most eminent capacity is the largest in Europe Belgium. occupations down through the is in Turkey. Increase in exports In 2019 Turkish jewelry ages. continues Export transactions exports hit record levels of 7.2 Today, the Turkish Jewellery of the Turkish Jewellery and billion dollars, surpassing the and Valuables sector turns out to Valuables sector exceeded 3 billion previously set goal of 6 billion be one of the prominent sectors dollars in the year 2014. The dollars, the Jewelry Exporters globally. Over 1,000 large factories, sector’s export figures increase Association announced. which are equipped with state- steadily each year. While the The UAE, the USA, Hong of-the-art technology and employ export figure was 200 million Kong, Libya and Israel were the more than 1,000 staff each, are in dollars in 1998, today it has grown top buyers of gold products and service in Turkey. Approximately to 3 billion dollars, as official jewelry goods in 2019. 350,000 people are employed records indicate, and this figure While the gold jewelry and by over 4,000 producers in comes close to 5 billion dollars jewelry shop was the leader 40,000 retail stores in the sector. when shopping by tourists and in total jewelry exports with Huge manufacturing capacity; shuttle trading are included. a volume of 2 billion dollars, Kuyumcukent The Turkish Turkey is the second-largest other product groups and export Jewellery and Valuables sector gold jewelry producer in the amounts in these groups are has been an arbiter in the export world, after Italy. More than 90 unprocessed or semi-processed market since 1980. The number percent of the sector’s exports gold with 1.7 billion dollars, of member exporter companies are derived from the category of diamond jewelry items with 151 of the Jewellery Exporters’ gold jewelry. A great opportunity million dollars, silver jewelry and Association is almost 1,000 as of in stone jewelry. Turkey With jeweler items with 115 million today. the exemption of tax from dollars. FEBRUARY 2020 ISSUE 79 29 Interview - Business World

Kamar: Our exports totaled 7.2 billion dollars in 2019

Jewelers Exporters’ Association Chairman Mustafa Kamar said, jewelry exports reached 4.1 billion dollars and totaled 7.2 billion dollars, including gold sent under the inward processing regime, setting a record and exceeding the export target of 6 billion dollars for 2019.

here is Turkey’s position in the world jewelry market? Turkey is one of the five largest jewelry markets in the world excluding the gold bullion trade, with China, the USA, , and Russia. We have a strong dynamic. Our culture is like that of India and China, gold is perceived as a commodity for investment purposes, also used as a cushion of capital. In addition to this, we are one of the world’s three largest manufacturers, with approximately six thousand manufacturers and 35 thousand goldsmiths and subsidiaries, employing 250 thousand people. Besides, we are one of the three biggest exporters in the world with Italy and China. Dynamically, we are a very powerful country. The jewelry sector is one of the most important sectors with no scaling problem in Turkey. Turkey has a production capacity of 16 - 17 billion with one shift. If we increase this to two or three shifts, we can reach 50 - 60 billion dollars without any investment. 30 W FEBRUARY 2020 ISSUE 79 The Turkish Perspective

FEBRUARY 2020 ISSUE 79 31 Interview - Business World

What can be done to create a design department. that are related to special stone cutting improve Turkey’s jewelry We have vocational schools here. Therefore, when these three parts production and to increase on design in 21 universities, of Turkish jewelry improvements are exports? What are your design departments and we implemented and the completion of its plans? say that we should place the own technology, we will be the market We have a strong production graduates to work. Other leader if we are to be a country that uses capacity. We use technology subjects are sub-details, such its own design and cut the stones. very well, but we are dragging as stone cutting. Stone cutting There are classical moves for all to use new technologies. is on Turkey’s agenda for sectors to increase exports. They organize The first problem is here. a long time, because if you fairs, conducts B2B meetings, the To be fair, Italians create want to produce something marketing staff of each company travel new technologies. They really special you must cut around the world, these are standards. innovate first, and then we the Stones accordingly. There However, it is not always possible to reach implement it. We are great are two kinds of stones in the the target customers. We want to get at implementing; we can world, standard stones that out of the standards now. It is an age of even improve after we get the are used everywhere and communication and relationship; we will first inspiration. But there is special cut stones. Italians cut carry out all our marketing activities with no technology that we have their stones according to their the motto “relation & communication”. discovered before anyone else. designs, China and People no longer have the trouble in This is the most important are also very successful. When finding goods, everyone finds the goods thing. The machinery sector they produce a non-standard they want to find according to their fiscal and the chemical sector are model, they can also cut non- strength. When we thought about how not aware of the jewelry sector. “We can export standard stone. We design we could do this, we decided to create Although jewelry is a labor- our models according to the a B2B holiday format. First, we started intensive sector, technology 12 billion dollars if standard stones, which are with Saudi Arabia, then in Miami and is also used. Therefore, the the government more readily available, but invited nearly 125 companies from jewelry sector uses laser wants us to.” then the added value is low. America and Latin America. We both and 3D technologies very We have been working on offered them a holiday opportunity and intensively. The by-products stone cutting villages Project we had the chance to meet them and of these technologies also for a long time. Stone cutting show them our collections. This format come from abroad, which can has two disciplines; one is is very popular in America. Then we be produced here. Secondly, diamond cut, the other is decided to divide our target points into another shortage in Turkey colored stone cut. We do our four in the world. Between 3rd and 7th as I always say is the design cutting for colored stones. In of January we organized the first fair process. Unfortunately, we fact, we will soon establish of the year, we brought together 200 follow in design. Someone a stone-cutting workshop buyers from 16 Russian-speaking and 25 makes a design; we see it and and bring craftsmen from Eastern European countries in Antalya. we do a better job than them. Thailand. The annual cost It was a fair in which 54 companies We invest in design a lot; we of this will be about 100 - participated, the strongest of their organize trainings and design 150 thousand dollars. First, regions. The Russian geography has such competitions and we call out we want to bring these two a characteristic that it corresponds to 30- to all jewelry companies to foremen and plant the seeds 35 percent of December sales. After these 32 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

sales, they cannot supply new goods until 3 billion dollars under the internal trading regime was the end of February or even March. We internal trading regime. Our one of our major export items, will now do the same in Dubai for the export figure of 4.2 billion and we hope for a return from Middle East and Africa, and in Singapore, dollars only shows exports this decision. Another issue is Malaysia, or for Central made in foreign currency, the the fact that Dubai, the world’s Asia, Asia, and . There are also net export of the sector is 7.2 export leader, who has no other challenges, such as bureaucratic billion dollars. However, these production but lifts the upper transactions and geopolitical tensions efforts declined at the end of limits for gold entry into the while exporting. Therefore, there is an 2019 with the decision taken country and can export 100 expectation that the barriers in front in a way to give a serious blow million dollars to the regions of the sector will be removed to ensure to the internal trading regime. where we export 10 million better export values. Therefore, the If the manufacturer of the dollars. We offered to apply increase in exports is not only in the gold bullion is not listed on this with the limitation of hands of exporters but also in the hands the London Bullion Market three kilograms of gold with of the government, trade and finance Association (LBMA), the gold the passenger. These incoming ministries. These institutions need to bullion cannot be transacted. gold scraps are accepted by clear the way for the exporters, this is the If the manufacturer is listed OECD because of its origin. way to increase exports. on the London Bullion Market However, the suggestion was Jewelry export has a great export Association (LBMA), the not accepted, I think we could capacity, the jewelry sector is a strategic bullion would be approved not fully explain. If these two sector. The jewelry sector has ended 2018 in Turkey’s gold exchange, important issues were hurdled with 4.5 billion dollars of exports, in increasing costs. It will then We will carry out over, we could bring Turkey 2019 this figure was 4.2 billion dollars. In reach the manufacturer, be all our marketing to an important place in the 2017, we said that we could increase our processed and resold. However, activities with the jewelry industry. exports by using the inward processing if the gold is produced in a regime. For the last two or three years, refinery that is not a member motto What is the trained especially in the term of Trump, of LBMA, it is sent back to the “relation & personnel power of dollarization, sanctions, swift problems, manufacturing country. While communication”. the jewelry industry? barriers and geopolitical tensions have there is a total of 650 refineries What jewelry sectors made it difficult to reach and transfer in the world, the number of contributions to the dollar. The countries we export to LBMA members is only 64. employment? are mainly , Iraq, , Dubai, Saudi We reached 3 billion dollars of The jewelry sector provides Arabia, Pakistan, India Africa, and North exports within the framework employment for approximately Africa. The world’s largest gold producers of the internal trading regime. 250 thousand people with are Kyrgyzstan, Uzbekistan, and Russia, The internal trading regime approximately 6 thousand and the largest gold trade is in Dubai, the was a very important system manufacturers and 35 United States, China, and Saudi Arabia. for us, both China, Russia, thousand jewelers. Since we We recommended that these countries Uzbekistan, and Kyrgyzstan are a labor-intensive sector, we apply an internal trading regime as have incredible gold mines. are having problems finding it would take years to sign a trade The incoming gold from these new employees. We must agreement. This is in the tax legislation places, that we aspired to recruit our employees from of all countries. In 2019, we exported process, has stopped now. The vocational high schools and FEBRUARY 2020 ISSUE 79 33 Interview - Business World

bring them to the sector. We in the domestic market. All in gold exports, two countries stand out as are a sector that needs total all, the jewelry industry is in a dominant, Dubai and Iraq. These two dexterity and professional good state. After the currency countries are followed by the US with 300 competence. With the recently fluctuations in 2018, some million dollars, but the weight continues introduced system, the project restrictions came on credit to be Middle Eastern countries. of working in workshops for cards and the installments three or four days a week for the jewelry sector were How will tensions between the US is a very important project, reduced to zero. However, the and Iran affect jewelry exports? especially for the students number of installments was The tension between the US and Iran in vocational high schools. later increased to eight for the will affect gold prices, while they will The raising of the labor force jewelry. We try to break down rise, the price-oriented markets, such in workstations instead of the perception that gold is a as the Middle East and Africa will stop schools is a very important luxury consumption tool and transactions. The sharp movements project. Turkey has 10 percent to create the perception that of gold affect our trade because we do unemployment but there is gold is a luxury saving tool. In business with the Middle East. no staff to employ. There are 2019 the world central banks two contrasts here, on the one have raised their gold reserves, What are the new target markets? hand, everyone is looking for including the Central Bank If we sell our products to American and qualified staff, on the other Turkey one of of the Republic of Turkey, Asian geographies, those regions are hand, there is unemployment. as the largest physical gold not price oriented but jewelry oriented. the world’s purchases made in the last Since the value-added price of the jewelry How would you evaluate three largest 50 years. How can gold be a is high, the increase in gold prices 2019 export? manufacturers, means of luxury consumption disappears within the price. For this If we look at the total export with in a situation where world reason, during our visit to America, we data, we have completed the central banks strengthen their aimed to strengthen our exports to Latin year with a record level of 7.2 approximately gold reserves? Gold is a luxury America and America. We have organized billion dollars. Other than that, six thousand savings tool. In fact, gold is not the Antalya fair for strengthening the we have met with the Ministry manufacturers a commercial commodity, gold relations with Russian geography and of Tourism, as one of the is money. But the Ministry of 25 countries in Eastern Europe. We do most monetized sectors in the and 35 thousand Commerce, although we have not exist in the Asian market; we need to tourism sector in Turkey. The goldsmiths and tried to explain, sees gold as a develop. sector sells 4 billion dollars subsidiaries, commercial commodity. in jewelry to tourism. We What are your export targets for 2020 have made a statement to the employing 250 What are the regions and and 2023? Ministry of Tourism, in parallel thousand people. countries that Turkey There are 500 billion dollars of an export with the goal of a thousand exports jewelry the most? value target for the year 2023 and the dollars expenditure per person As Jewelry Exporters share of the jewelry sector was set at 12 from 650 dollars and claimed Association, we are exporting billion dollars. We can export 12 billion that a shopping list for tourists both gold bullion and dollars if the government wants us to. We could be made and the jewelry processed gold, therefore, cannot set a target for 2020 as the issue sector should be placed among exports should be divided of the internal trading regime, the rise in the first row. into two. In the export of gold gold prices, Middle Eastern tensions and We have a gold export of 7.2 bullion, sales are generally the tension between the US and Iran may billion dollars, jewelry exports made to the central banks and affect tourism. Geopolitical turmoil in the of 4 billion dollars and an the leading ones are the UK region affects our exports of jewelry and average of 6-7 billion dollars and Switzerland. In processed gold. 34 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

A Master of Murassa: Hraç Aslanyan

Starting jewel crafting as an apprentice of his uncle in Grand Bazaar, Hraç Aslanyan brought together the centuries old ceramics/porcelain tradition with the art of “murassa”.

IN 2008, in order to sustain the youth away from some crafts. the East, especially from Iran and jewellery art and to convey the I am promoting education but as the Caucasus, were brought after Grand Bazaar jewellery tradition our orient culture diminished in Fatih Sultan Mehmet founded the to the young generations and to time, we suffer from losing master- Grand Bazaar in order to protect build bridges among generations, apprentice relations.” precious arts. Aslanyan said, “At he established Mahrec Sanatevi “I recommend traveling to that time, Byzantium had a very (Mahrec Art House) together with youngsters not just to see new rich culture. When all of them were the Istanbul Chamber of Jewellery. figures,” says Aslanyan pointing blended, a very rich jewelry culture Up until now Mahrec Sanatevi out the importance of seeing the emerged.” hosted hundreds of domestic and advanced technologies and different Aslanyan says that his foreign students who are candidates disciplines, to expand their vision, exhibitions are mainly focused on of design and jewellery art and underlining the importance of Pieces of jewelry crafted US and Japan, because of the and has become a training center getting to know about a craft from a by Hrac Aslanyan respect for handcrafts in these acknowledged at national and different culture. countries, also adding the UK but international scale. Joyfully stating that Turkey not as much. Aslanyan said that the being a brand in jewelry market, Stating that Turkey is a young hierarchical structure of master Aslanyan said the precious treasure and dynamic country in jewellery, – apprentice relationship has of Istanbul school in jewelry has Aslanyan pointed out that Turkey disappeared in time. Relating this received very nice influences from is not as powerful in jewellery to the education system, he said, both the East and the West and sector as it deserves but its power “Back in my day, then children these influences have blended is not half bad. Showing the way were able to work as apprentices very well, Istanbul being a cultural to get better as R&D and education in any kind of profession. The bridge rather than a geographical in order to export value added obligatory education made drove one. In parallel, many artisans from products and to have a brand. FEBRUARY 2020 ISSUE 79 35 Interview - Business World

Zen Diamond seeks to expand in Europe and Latin Americas Chairman of the jewelry exporter Zen Diamond, Emil Güzeliş said that they export to different regions from their factory.

Ariş on the Way to Become a World Brand Kerim Güzeliş, Chairman of Ariş Pırlanta, said that Ariş aims to add new ones to the countries to which Ariş exports with new stores.

ARİŞ PIRLANTA, one of the most established companies GÜZELİŞ said that Zen Diamond has 68 stores in Turkey in the jewelry sector with its 114 years of experience, and 13 stores abroad; 3 of them are located in Düsseldorf, has achieved many of the ‘firsts’ in the Turkish jewelery Cologne and Hamburg, 3 in Dubai, one in , Iraq, sector, will accelerate its growth with new stores to be Kuwait and Bulgaria as well as their new store in New York, opened both in Turkey and foreign countries in 2020. As USA and added that there are new stores to be opened soon part of its vision of becoming a world brand, Ariş Pırlanta in Kuwait and Iraq. took its first step towards becoming one of the leading Zen Diamond also has wholesale offices in New York, brands abroad by entering the Turquality Program. Ariş Antwerp, Dubai and Düsseldorf, with these offices and the Pırlanta Chairman of the Board Kerim Güzeliş said, “In international fairs they attend, they sell their products to the the new year, the majority of our investments will be whole world, Güzeliş says. made abroad, creating dealers, sales point creation- Güzeliş said: Zen Diamond’s new target countries in 2020 development, brand investment and digital investments are Middle Eastern countries because of the high perception in the country.” of Turkish brands and researches for Europe and America is still underway. NUMBER OF BRANCHES TO INCREASE IN GERMANY Explaining the product segments that Zen Diamond Güzeliş said, “We operate in Germany and Hong Kong expands abroad, Güzeliş pointed out that what comes to abroad. In December 2016, we opened a store in mind when people think of diamonds are solitaire rings, Berlin, Germany. In 2020, our efforts to branching in five-stone rings, full-rounds, waterway bracelets are the most Germany and increase sales points will continue. We popular jewelery in every country. Apart from these designs, have established connections with Netherlands, Austria there may be some slight differences according to the and the Turkic Republics. In 2020, we will have store different regions that they produce special orders for he said. investments in these countries. We will also take part in Since there are no fast-changing and very different international fairs such as Hong Kong and Inhorgenta. fashion trends in diamonds, as in textiles, Güzeliş claims Netherlands, Austria and the Turkic Republics are mong that diamonds are a classic in every region. Zen Diamond our target countries, while America and Arab countries having a large jewelry collection ranging from solitaire are our targets in the long run. According to the road to five-stone, full-rounds, classics, colored stone models, map we determined in 2015, we aim to be positioned large flamboyant jewels, bracelets, necklaces and wedding in Europe in 10 years and to become a world-renowned jewelery for daily use. brand in the second decade. We continue with the Güzeliş also added that Zen Diamond has a factory with strategies we have created in line with this goal. We will the largest production capacity in Europe and the Middle continue to grow abroad with our retail stores.” East where all Zen Diamonds production is made. 36 FEBRUARY 2020 ISSUE 79

Innovation

Turkey’s Car Introduced

Turkey’s Automobile Initiative Group (Türkiye’nin Otomobili Girişim Grubu), TOGG, introduced a preview version of the C-SUV models which will begin production in 2022, at the Innovation Journey Meeting in the IT Valley in Gebze. A C-Sedan concept was displayed along with the C-SUV model.

OFFICIALLY established on June including President Recep Tayyip ALL NEW, NATIVE ELECTRIC 28, 2018, TOGG introduced the Erdoğan, National Assembly MODULAR VEHICLE first pre-screening vehicle and President Mustafa Şentop, Vice PLATFORM its Sedan concept, revealing the President Fuat Oktay, Members Three main pillars defining the point of design and engineering of Presidential Cabinet, Board all new, native electric modular works only 18 months after Chairman of the Union of platform that will provide the its establishment, to lay the Chambers and Commodity infrastructure for all models of the foundation of its factory in Exchanges of Turkey and TOGG TOGG range are as follows: Bursa, in 2020. By 2030, it will Rifat Hisarcıklıoğlu, Turkey’s 1. Genuine: An all new, state- produce 5 different models on Automobile Initiative Group of-the-art, native electric and a joint e-platform, with fully shareholders, representatives connected platform, completely owned intellectual and industrial of the business world, TOGG developed by TOGG engineers, property rights. employees and relatives, was at with intellectual property rights Founded with a unique the ceremony of Turkey’s first 100 percent owned by TOGG. collaboration model in Turkey and Hisarcıklıoğlu said, “We automobile with great enthusiasm 2. Modular in length and width with the synergy of The Union missed this opportunity and admiration. to support of Chambers and Commodity in the 1960s. But this time, Exchanges of Turkey (TOBB), and we will accomplish it.” companies Anadolu Group, BMC, Kök Group, , and Zorlu Group, which have experiences in different areas such as retail, automotive, telecommunications and consumer electronics, TOGG introduced the first prescreening car to Turkey and the world, which foretold that automotive has become a mobility ecosystem. Almost 2 thousand people

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all vehicle variants with max manufactured here, but the brand, Further noting that the first efficiency, comfort, durability and patent and design will be ours. We vehicle they produce will be a SUV, safety. won’t buy a license; we will sell Karakaş explained the reason for 3. The infrastructure that a license. We will not assemble; this as follows; “SUV is the fastest maximizes the width, we will make them assemble. We growing segment of the past 5 spaciousness and comfort of the will not work for someone else’s years and will remain so in the living space in the car by offering patent; we will employ foreign next 5 years across the world and the longest wheelbase in its class. engineers for our own patents. in Turkey. Also, we know that this where it was met with great Hopefully in 2022, we will get our is the most suitable segment to enthusiasm and admiration. first vehicle from the production create a popular brand as it is the Regarded as one of the projects line. Turkey’s automobile is more most desired segment by Turkish of strategic importance in 2023 than just an automobile but a consumers, alas a domestically by the Ministry of Industry and challenge. Turkey’s automobile is produced alternative is almost Technology, TOGG will be one a technological transformation, non-existent.” of the pioneers in the targeted a global brand, creating 20 technological transformation. thousand additional jobs, and Inspired By Tulips will contribute 7.5 billion dollar TOGG worked with Italian design We’re one step closer to a reduction in the current account firm Pininfarina on the C-SUV’s half-century dream deficit. It will contribute 50 billion styling. The idea was to create TOBB President and TOGG dollars to the gross domestic TOGG to create 20 something that appeals to both Chairman of the Board Rifat product. thousand additional jobs Turkish and global consumers. Hisarcıklıoğlu said, “At the TOBB and will ontribute 7.5 Inspired by Anatolian Culture In General Assembly in 2017, our Transformation has just begun billion dollar reduction in addition to be shaped by Turkish President called and asked us to Speaking about the the current account deficit. consumers’ insights, the design is undertake this project. We brought transformation of automotive also inspired by Turkish culture. together our big players and kept to mobility ecosystem TOGG The tulip, which has strong roots our promise. Automotive industry CEO M. Gürcan Karakaş in Anatolian culture, has is changing the shell. And a new said, “Everyone is at become an inspiration window of opportunity opens for the beginning figure. A stylish us. We missed this opportunity in of the electric interpretation of tulip the 1960s. But this time, we will and connected design is imprinted accomplish it.” automobile race on the front grille and in the world. Agile, wheel rims, to give the “It is beyond a car” creative, collaborative car its signature look, Do you know why we call it as and user-oriented while underlining Turkey’s automobile?” asked organizations will succeed in the deep connection Hisarcıklıoğlu and answered; this race. We are in the right place with Turkey’s rich cultural “Because, it will not only be at the right time.” heritage.

WHAT TOGG OFFERS Electric Driving Experience Range Over 500 Kilometers Rapid Charge Under 30 Minutes 8-Year Battery Warranty Economycal and Environmental Awareness Unique Driving Dynamics Unmatched Performance with 0-100 km/h Acceleration in 4.8 Second ADVANCED SAFETY Driver Support Systems Updated on the Internet More Than A Car: New Smart Living Space A Unique Experience With Disruptive Technology

FEBRUARY 2020 ISSUE 79 39 Sector

Turkey eyes 120 billion USD from tourism Transformation Tourism Scenarios Report foresees that Turkey could host 104 million tourists and could obtain 120 billion dollars of tourism revenue in 2033.

THE REPORT prepared by around 34 billion dollars was launched next year,” he added. the Turkish Tourism Investors achieved in 2019 and added the Reminding that the Ministry Association (TTYD) with exact figures will be announced at have implemented the Tourism the cooperation of Turkish the end of the month. Development Agency, which Industry and Business Ersoy announced that in started to be implemented 100 Association (TUSIAD) studies the 2020 the expected number of years ago in countries with transformation scenarios of the tourists to be 58 million, tourism high tourism income, Ersoy tourism sector, one of the key revenues over 40 billion dollars said, “With the agency we had players in Turkish economy. We have worked and pricing per person per night the opportunity to promote The report, which has been to be 78 dollars. Speaking about sustainable, intensive, effective worked on since May 2017, on five scenarios; 2023 goals Ersoy said that the and widespread promotion with aims to diversify the tourism third age expected number of tourists to be the innovative communication and spread it to the country tourism, health 75 million, tourism revenues to and technology of the era. Our for 12 months, and to increase tourism, urban be 65 billion dollars, and the price budget to promote tourism was tourism income per capita, and per person per night to be at 91 at 18 million dollars in 2018. includes analyzes and strategic transformation dollars. We have increased the budget transformation scenarios. in tourism, to 75 million dollars with some promotion TWO MEGA PROJECTS IN revisions. In 2020, with the MINISTER OF CULTURE AND ÇEŞME AND DİDİM contributions from the sector, we TOURISM ERSOY: WE AIM TO advances and the Ersoy said that the Ministry are increasing this budget to 180 GENERATE A REVENUE OF diversification of was working on two major million dollars. The next year it OVER 40 BILLION USD THIS accommodation. projects that are projects will be 200 million dollars, then YEAR that are respectful to nature, 210, 2023, will raise 220 million Culture and sensitive to recycling and have dollars.” Mehmet Nuri Ersoy said that, the infrastructure and product 51 million tourists have visited variety required by 12-month TTYD PRESIDENT Turkey in 2019, an average of tourism in Çeşme and Didim OYA NARİN: WE CAN 71 dollars of price per person region. “Tourism residences, third OBTAIN 120 BILLION per night have reached and the age tourism and health tourism DOLLARS TOURISM expected tourism income at projects are the projects to be REVENUE IN 2033 40 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

in all axes. Kaslowski pointed out that the World Tourism and Travel Council predicted that the tourism incomes would reach 10 percent of the global economy in 10 years in 2012, and said: “It took only four years for the sector to cross this threshold. The number of tourists, which was 25 million in 1950, reached over 1.4 billion in 2018. The diversity of mobility tools, the opportunities provided by technology and the rapid dissemination of information were very effective in reaching this scale. The new generations, which are becoming increasingly demanding, not only in their own country but also in every aspect of the planet, are now very effective in transforming their business models. The tourism sector continued to grow despite all the geopolitical uncertainties and economic instability in the world. Our goal should be to maximize the contributions from this economic development, social and cultural rapprochement opportunities to our country. The increase in the number of tourists TTYD President Oya Narin claimed such as the transformation of is undoubtedly important in that the tourism sector has obsolete structures, promotion this process, but the increase in potential to be the carrier of the advances and the diversification Tourism promotion income per tourist is even more development of the country has of accommodation. So, if a new budget increased to critical in terms of sustainable been confirmed analytically in the tourism regulation could be 75 million dollars with growth. Focusing on programs report. implemented with a proper some revisions. that will strengthen the potentials Narin pointed out that if public-private cooperation of different types of tourism in the conversion scenario was we can create a structure that a holistic and regional manner implemented the number of aims to reach a tourism target will provide significant benefits. incoming tourists by the year starting from the management of In this context, it is necessary to 2033 would reach 104 million, destination points and spreading strengthen the publicity tools, Turkey tourism revenue would to 12 months and throughout renew investments, continue increase to 119 billion dollars and the country, and by 2033 we new investments considering spending per capita would reach can obtain a tourism income tourism trends and strengthen 1,150 dollars, according to the of 120 billion dollars and a the infrastructure. I hope that the same scenario, the unemployment minus 2.0 points advantage to suggestions in the study shared rate would fall to 7.6 percent and the unemployment rate can be today will be included in tourism- creation of additional tourism achieved.” oriented strategies. “ revenue could increase the Stating that the sector quarterly GDP by 1.6 points on TÜSİAD CHAIRMAN is affected by social and average. KASLOWSKI: technological transformations and Narin stressed that the report INCREASING changing consumer expectations, is a very serious scientific study REVENUE PER Kaslowski emphasized that and said, “We have worked TOURIST IS CRITICAL adaptation to all these changes on different scenarios. Many TÜSİAD Chairman Simone requires measures and that the scenarios could be included in Kaslowski said that the added sector’s cooperation with the the report, but we chose the most value created by all sectors is public and academy will be an measurable five scenarios; third very valuable in terms of the important catalyst in finding age tourism, health tourism, power of the economy and that solutions to these problems. urban transformation in tourism sustainability should be provided FEBRUARY 2020 ISSUE 79 41 Travel

Snow Globe of the World:

Turkey, a potential “snow globe” of the World, has setTurkey about utilize it’s potential. Turkey has started an intensive work program and is increasing the capacity of its World renown ski resorts such as Uludağ, Palandöken and Kartalkaya.

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Whitefest, the entertainment marathon of Uludağ, which has been going on for 17 years, will take White place between February 2-13 this year. Paradise: Uludağ The festival, which is held in three stages Turkey’s “white paradise” Uludağ, is with four daily periods, will excite a destination with the reputation beyond the boundaries of Turkey. Uludağ is a center of participants once again with its live performances, after ski parties, attraction, with its proximity to the metropolitans dance and laser shows. of Turkey and Europe, as it is visited by foreign visitors almost as many as domestic visitors. Offering a postcard-like landscape with its ice lakes, plateaus and forest areas, Uludağ is frequently visited not only in the winter, but also in the summer due to its fresh air and hiking routes.

FEBRUARY 2020 ISSUE 79 43 Travel

Kartalkaya, being one of the most important routes in the winter and ski tourism area, offers its visitors a great winter holiday with its international standard tracks, luxurious and comfortable hotels. The surrounding landscape with national parks and springs offers a delightful view is one of Europe’s holiday spots.

WINTER tourism, generally the title of “alternative”, Turkey studies show that with the included among “alternative has started to treat winter tourism studies underway and publication tourism” policies, is an important like summer tourism, thanks campaigns, Turkish winter tool for countries to increase to the recent tourism policies tourism will be counted among tourism revenue and extending and incentives provided by the the popular winter destinations. tourism over the whole year. state. Turkey, having the means Turkey has set out a road map for to achieve a successful winter MASTER PLAN FOR WINTER winter and ski tourism, which has tourism with its natural resources, TOURISM a great potential. is trying to get in the competition Turkey has created a new Turkey, having potential over Among the 7 main in winter tourism with the master plan for zones that have world standards in tourism, classifications of roadmaps created. touristic value and added winter offers touristic services in every Located on the Alpine- tourism to it’s “Tourism Strategy way with its natural, cultural and “Tourism Strategy Himalayan mountain 2023” plan. Among the 7 main gastronomical values. Aiming to 2023”, total bed range, Turkey has extensive classifications of “Tourism diversify its success in tourism amount capacity mountainous terrains, which Strategy 2023”, total bed amount with natural resources, Turkey has have a spot height between capacity will be increased to 100 speed up the process of its share will be increased 1,500 – 3,000 meters. Mountains thousand in 29 centers in 2023 in winter and ski tourism. to 100 thousand in in Turkey, such as Beydağları, for winter tourism, from 13,500. 29 centers in 2023 Taurus Mountains, Balkanlar, Activities to increase the share of TURKEY, HAS THE POTENTIAL Aladağlar, Munzurlar, Cilo and Sat ski and winter tourism will put TO COMPETE WITH ALPINE for winter tourism, mountains and Kaçkarlar, have into practice to accomplish this MOUNTAINS from 13,500. been formed at the same time objective. Extending the period Turkey’s tourism has the potential period with Alpine mountain of semester holiday and starting to be an active touristic zone range. Therefore having similar the semester holiday at different throughout the year with its flora even though they extend periods of time according to unprecedented natural and having higher. In consequence Turkey seasonal variations is considered four seasons, even though touristic has the potential to compete with as a part of this plan. There are activities cluster at shores of Alps. regulations for promotional Aegean and Mediterranean seas. Turkey has recently started works underway to add the image While the options besides sea to consider winter tourism as of winter among the blue and tourism have been listed under a strong tourism category, but green image of Turkey. On the 44 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

Palandöken ski center, which has Apart facilities where the Alpine from the Alpine Mountains, Sarıkamış ski discipline can be easily applied, facilities, which is the only acts as an international station place that has “crystal snow”, use in terms of ski sports and winter the crystallization feature for movements. Palandöken has the a long time because it does the world’s longest ski tracks, 28 kilometers in total not frost due to low length. humidity.

other hand, there are studies underway for the resorts that are even though not being in line carried out to create destination below 2,000 meters, in order to with the facilities in the Alpines administrative supervisions for eliminate risks and preparations but have already reached the mountains and ski resorts, such for installing meteorological ski resorts in Italy and Bulgaria, as Erciyes. stations for the resorts that need costing up to three times. The Ministry of Culture one are being prepared. There are Ski resorts increased and Tourism works on on the technologies to be implemented occupancy rate by approximately rehabilitation of regional touristic such as, artificial frost depositing, Ski resorts have 80 percent in the last 10 years and areas, especially in Central and product diversification and cloud increased the number of visitors Eastern Anatolia. The ministry seeding to eliminate the affects of increased the from 3.5 million to over 8 million is presenting incentives to global warming caused by climate number of visitors people. Resorts operated in full entrepreneurs and investors put change. Hotels that lack snow around 80 percent capacity in semester holiday and the virgin mountains in Anatolia due to global warming are using contributed 1 million liras to into service. Eastern Anatolia is artificial frosting to maintain the in the last 10 economy. Turkey have reached attracting attention of foreign quality and extend the winter years and reached the tourist number from summer investors with gastronomy, culture, season from the beginning of 100 percent 2019 in winter tourism. This history and architectural tourism september to end of march. occupancy rate liveliness of the previous year among other touristic values. continued from where it left off European and Arab tourism OCCUPANCY RATE REACHES in the semester in the semester. The demand, investors are aware and waiting 100 PCT. holiday of 2020, which exceeded the capacity to local winter tourism, which Figures of advancements in the contributing 1 of the centers such as Uludağ, is considered as Turkey’s most skiing and winter sports reveal Kartalkaya, Sarıkamış, Palandöken profitable sector in the near future. that Turkey could be an important million liras to the and Erciyes, activated the services Turkey is also considering climate center of winter tourism. economy. earlier this year. The density change and global warming while Ski centers in Turkey have pushed investors to new regions. developing a strategy plan on almost reached the level of the Investors started to determine winter and ski tourism. For the Alps in terms of quality and price. road maps especially in the resort of natural snow safety Especially Uludağ stands out at ski hotel area. There is also a 2,000 meters is taken as reference this point. On the other hand, liveliness in new hotels alongside on site of establishment for ski it started to show that it is a big the resorts of the local and foreign resorts. Transportation plans are competitor in terms of popularity, investors which are active. FEBRUARY 2020 ISSUE 79 45 Focus

Turkey’s innovation ecosystem grows above the EU average Innovation ecosystem has grown rapidly in the last eight years according to the report “Startup Ecosystem Status of Turkey-2019”, prepared by T. C. Presidential Investment Office and startups.watch.

Turkish innovation ecosystem outperformed the EU average by 15.1 percent between 2010 and 2018

46 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

THE REPORT emphasized the 550 START-UPS INSTALLED IN THE NUMBER OF ANGEL growth in technoparks, the growth ONE YEAR INVESTORS TRIPLED rate of technology transfer offices In Turkey, 550 start-ups establish The report showed reason behind and incubators of innovation on average each year. Between the rapid growth in the innovation and growing ecosystem in 2010 and 2018 they managed and start-up ecosystem in Turkey, Turkey. The sales of companies to raise 488 million dollars from the supports and grant of the such as Trendyol, Yemek Sepeti, angel investors and venture Treasury Department, Industry Markafoni and Gittigidiyor capital investment funds. The and Technology Ministry, and over 100 million dollars in report said: “Venture capital TÜBİTAK and KOSGEB as well start-up investment has brought investment funds, licensed angel as the Regional Development confidence in the innovation investors and angel investment Agencies. The increase in the ecosystem of Turkey. networks invested a total of 58.7 number of venture capital mutual The IT has doubled in million dollars in 2018. Turkish funds and angel investors created magnitude in the last four years venture capital mutual funds 550 by the companies also made a and reached a total market size invested 34.4 million dollars in significant contribution to the of 131.7 billion liras, growing 17 the first quarter of 2019, while development of the start-up percent. investing 39.2 million dollars in ecosystem. The main reason for The information technology 2018. this increase is a 75 percent tax sector’s growth has doubled advantage for licensed angel and reached 44.7 billion liras in GROWTH IN TEKNOPARK investors. 2018. The report shows that the TURNOVERS The number of venture capital e-commerce market has increased Report shows that the number The number investment funds created by as well , growing by 42 percent in of technoparks has reached 81 of start-ups companies increased to 25 in 2018 compared to the previous as end of 2018, which began in 2018 from two in 2010. year and reaching 59.9 billion 2001. According to the report, established in a The number of angel investors liras. there are 5,334 start-ups in 81 year in Turkey licensed by the Ministry of technoparks and the total number Treasury and Finance reached 471 TURKEY’S ECOSYSTEMS ARE of employees is around 51,574. in 2018 from 155 in 2013. GROWING ABOVE THE EU Total turnover of companies in The licensed angel investment AVERAGE technoparks increased by 23.1 network increased from 2 in 2013 According to the 2018 European percent in 2018 and reached 16 from 15 in 2018. Innovation Score Table, billion liras. Total exports volume Turkey performed over 15.1 although the Turkish innovation has increased by 31 percent percent of the EU average growth. ecosystem is at a moderate level, compared to the previous year adn Turkish start-ups were funded outperforming the EU average by is 3.8 billion liras. 488 million dollars between 2010 15.1 pct. between 2010 and 2018. and 2018.

FEBRUARY 2020 ISSUE 79 47 Franchising

48 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

Franchise sector to create an ecosystem of 50 billion dollars in 2020 Franchising sector, expected to create an ecosystem of 50 billion dollars, continues to grow as the number of franchise investors in Turkey exceeds 10 thousand in 2019.

FRANCHISING is a business Turkish brands are not only from the store brands where the relationship in which the owner of an important player in service The food and beverage products that have the accepted the business providing the product exports, but also an important tool brands stand out among quality and are sold. At this stage, or service assigns to independent in the development of Turkey’s the 205 companies the importance of franchising people the right to market and economy and international expanded abroad.. becomes clear. distribute the franchisor’s goods recognition. According to “Turkish or service, and to use the business Among the reasons for this Franchising Association, name for a fixed period of time. rapid growth of the franchising companies that franchise will The franchising system aims system are the amount of capital open 3 thousand and 470 to enable the investor to have a required for the system, the branches, while the total number business by using the knowledge motivation of the entrepreneur, of branches are expected to of the institutionalized brand the standardization of the system, be over 7 thousand and create owner, by creating the equal an accepted brand and control approximately 30 thousand jobs opportunity in the region where mechanism. in 2020. they are located and by using their The service sector has The size of the franchising knowledge in making a serious grown very rapidly in the world system reached 43 billion dollars investment. recently. In line with the growth in 2019. The number of jobs Franchise system develops of the service sector, there has created by the franchising market and grows with applications been a very rapid growth in the in 2019 exceeded 250 thousand of many different brands from franchising system. people with 65 thousand different sectors in Turkey. There Today, customers want to use branches. By 2020, the industry’s are over 20 sectors in Turkey that time effectively. Therefore, they market size is expected to reach 50 operates with franchise system, desire to purchase quality goods billion dollars. are branding and growing with and services as fast as possible. More than 10 thousand franchise system. This is possible by shopping entrepreneurs joined the FEBRUARY 2020 ISSUE 79 49 Franchising

The size of the franchising industry reached 43 billion dollars

The market size expected to be 50 billion dollars in 2020

The number of jobs created by the franchise sector franchising ecosystem in 2019, exceeded in Anatolia due to the limited agree that entertainment concepts while 205 Turkish brands number of shopping mall projects will mark the industry in the expanded abroad. to be opened in Istanbul. In this coming period. context, İzmir, Antalya, Adana, On the other hand, the FOOD AND BEVERAGE Mersin, Gaziantep and Hatay are ‘eatertainment’ concepts, which SECTORS GROW 250 shown as prominent provinces. are called experience-oriented thousand people. Franchising system grows There is an estimated growth workshops, have been successfully stronger day by day in Turkey in of 10 percent in the entertainment growing especially in abroad in sectors such as food, real estate, field in Turkey. This growth the food and beverage category. automotive and education. We see creates new potential business that many different brands from The number of chain opportunities. It is possible to see ABROAD EXPANSION different sectors are developing business in Turkey: new concepts in the amusement CONTINUES and growing with franchising. As parks and playgrounds recently The contraction in the domestic the sector grows, the interest in located in shopping malls. market has also accelerated the franchising system in this field There is an increase in the the international expansion of also increases rapidly. 3500 number of domestic brands in this brands that want to distribute With the growth of the sector, where investment amounts the risk. The food and beverage real estate sector and foreign start from 100 thousand liras and brands stand out among the 205 investors entering the market, reach up to 1 million liras. Experts companies expanded abroad. there is a great interest in the Number of branches franchise system in the field of connected to chain real estate consultancy. Apart from these areas, service areas enterprises Advantages of franchising; such as car wash, dry cleaning, sports, entertainment and 65,000 • Having a branded, reputable business. education sectors also offer great • Fast returnof investments. opportunities for investors who • Establishing a proven, low risk business. buys franchises. • High income is provided at low cost. Currently, multinational brands • Well-known brand is invested that can be sold easily. are expanding in Anatolia through Number of Turkish • Having customers with limited expectations, that franchises. In the coming periods, brands opened abroad can be easily satisfied. a great opportunity will be created • Having an institution to consult if necessary. for those who want to stay in • Ease of investment and procurement. the metropolitan cities and do • Marketing activities are carried out by the parent business in Anatolia. company. The retail is expected to grow 215 50 FEBRUARY 2020 ISSUE 79 Briefing The Turkish Perspective

Turkish Airlines added the starting point of the historical silk road to its flight network

significant historical capitals while transferring the historical Silk Road to above clouds with our cargo operations. Our new flights will also contribute to the tourist numbers coming to our country with the increasing attention from Chinese tourists to tourism centers of Turkey.” Turkish Airlines passengers traveling to Xi’an, one of the oldest civilizations of the world, will have the opportunity to explore OFFERING its guests the reinforced its strong position in the numerous cultural heritages opportunity to fly directly to 126 Asia with the Xi’an flights. With Turkish Airlines’ flight along with the historical fabric countries from Istanbul, Turkish this new addition, global carrier’s network encompasses the of the three thousand years old Airlines added Xi’an, the Chinese flight network encompassed the entirety of the historical city. Serving as the capital of 13 city with three thousand years of entirety of the historical Silk Road. Silk Road different dynasties during the history, to its flight network on During the ceremony of the history of China, the region’s December 30. inaugural flight, Turkish Airlines most popular destination is Xi’an became the flag carrier’s General Manager Bilal Ekşi the Terracotta Army, which fourth destination in Mainland stated; “We conclude the year by draws over two million tourists China and the 318th destination adding a very special city to our annually. Hidden underground in the world. The flights will be flight network after numerous for nearly 2200 years, it was first operated three times a week with innovations in various areas and discovered during the excavations Airbus A330 aircrafts. the move to our new home that in 1974. Featuring eight thousand Starting its flights to China took place during 2019. We will terracotta soldiers, it is considered back in 1999 with Beijing as its carry our guests to 126 countries as the Eighth Wonder of the destination, Turkish Airlines from Xi’an, one of the most World.

Anadolujet goes global with its new international flights TURKISH Airlines’ AnadoluJet brand goes global on March 29 with its new international flights from Istanbul Sabiha Gökçen Airport. With its whole operational processes covered by the Turkish Airlines assurance, the international flights will also Airlines and will open its doors this new strategy, the number of put comfort at the forefront. The to the world, allowing us to additional offered seats will be onboard catering by Turkish carry more passengers with the 1.2 million. New flight planning DO&CO will continue free of Turkish hospitality. We wish to will offer 30 percent better charge. make AnadoluJet the airline that connectivity for the connected Sharing his views on the becomes the meeting point of domestic and international flights. new planning, Turkish Airlines the world just as its namesake AnadoluJet is now waiting to Chairman of the Board and the Anatolia, the land that was and is offer its unparalleled domestic Executive Committee, M. İlker the connecting point of numerous service provided with Turkish Aycı stated; “To this day, we civilizations throughout the Airlines’ experienced crew to its carried millions of passengers history. ” passengers travelling abroad. to four corners of the world with With its aircrafts consisted of Starting on March 29, tickets for our brand Turkish Airlines. From solely economy class, AnadoluJet the new flights are available via March 29 on, AnadoluJet will will increase the passenger AnadoluJet and Turkish Airlines continue the example of Turkish capacity by 22 percent. With sales channels.

FEBRUARY 2020 ISSUE 79 51 Interview

Philipp Haas, Chairman of BOD&CEO of Deva Holding: Turkey is a promising and fascinating country Philipp Haas, Chairman of BOD&CEO of Deva Holding since 2008, two years after founding Eastpharma as a part of a takeover of Deva Holding, states that Turkey is a promising and fascinating county. Deva exports to over 50 countries after establishing its international markets department in 2009.

THE HISTORY of DEVA begins create value for Turkey. At DEVA, products in PAH and MS fields. in Istanbul in 1958. What are I believe Turkey has a our goal is to manufacture every All our products are the key milestones of DEVA? very high potential to medicinal product in Turkey, which manufactured in our sites, Currently, what are the key develop a wide range of can be locally manufactured, and 2 of which are in Çerkezköy therapeutic areas of DEVA industries. The country has offer accessible treatments on a and 1 in Kartepe, which are and what is the production all necessary conditions global scale. all equipped with the state-of- capacity? to develop high tech Currently, we have over 600 the-art technology and have DEVA is a local, long-established industries, such as pharma products in our portfolio across international quality standards. pharmaceutical company and biotechnology 13 therapy areas, ranging from We are one of the most diversified operating in Turkey since 1958. among others. hematology and oncology to pharmaceutical companies Currently, we are engaged in cardiology, respiratory and with more than 30 forms in our manufacture of human medicinal ophthalmology. Our portfolio 3 production facilities with an products, pharmaceutical raw diversity and wide variety of annual production capacity of 578 materials, medical ampoules and forms distinguish us from other million units. animal health products. Employing companies. Recently, our portfolio 2,300 associates, with EU GMP and has expanded with new products Turkey’s economy has passed US FDA approved manufacturing in the fields of antihypertensive, through a difficult period in sites, awarded R&D center, and antibiotic, osteoporosis, NSAI 2019. Can you tell us about the exports to foreign countries, we and oncology. We also have new investment of DEVA in Turkey? 52 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

2019 has been a challenging year toll manufacturing and co- health care sector as a whole. for the pharmaceuticals industry development. We have made Both private and government in terms of the exchange rates, important headway toward hospitals are built, improving pricing and restrictions. I believe becoming a global-scale company access to health care to the whole that our country has a great within a quite short time. The population and also there is an potential for the pharmaceutical number of approvals we hold has important health tourism industry industry, and it is worth exceeded 700 in 60 countries developing. We see it as our investing. At DEVA, our goal is around the world, including the mission to provide highest quality to manufacture every medicinal USA, Switzerland and Germany. pharma products to the Turkish product in Turkey, which can be Currently, we are exporting drug patients, while at the same time locally manufactured, and offer products and APIs to more than developing the same products for accessible treatments for the 50 countries. Moreover, our the export markets and our export medical community. We continue other international operations strategy is designed to promote investing to that end. Our output are conducted under the Devatis the Turkish pharmaceutical has climbed to approximately 240 brand name in the USA, Germany industry all over the world. million units from 60 million over and Switzerland. the past decade. We are increasing Local manufacturing and BESIDES, RENEWABLE our output at a growing rate export must have a fair share ENERGY AND ARTIFICIAL every year and this increase will of a healthy economy. It is also INTELLIGENCE ARE ALSO continue in 2020. our aim to export products that PROMISING. we manufacture in Turkey to In terms of new technologies, You have been in Turkey for countries around the world. We among others, at DEVA we years and you know well about are working hard to represent established a biotechnology center the Turkish business world. Turkey in the best way on the and started to invest in developing How would you define Turkish international stage. We meet biotechnology products. Of course, business world and ecosystem? all established international this is a challenging area, but What are the distinctive standards. We are proud to be Turkey offers a good environment characteristic features? What making a positive contribution Currently, we have in terms of institutions, would you say about Turkey’s to the national economy with our over 600 products regulations and human resources production and manpower? growing exports. in our portfolio Did you have a chance to travel Turkey is very promising country. Which industries will be across 13 therapy in Turkey? Where are your I am more confident in Turkey’s prominent? What do you think areas, ranging favorite places? environment for producing about the potential of Anatolia from hematology Turkey is a fascinating country. quality pharmaceuticals, because in terms of production? It is a unique geography that Turkish people are hardworking, I believe Turkey has a very high and oncology connects east with west. I have honest and ambitious. As DEVA, potential to develop a wide range to cardiology, travelled to all regions in Turkey our excellence in product quality of industries. While Turkey is respiratory and and I am impresses by the natural is confirmed. Our EU-GMP already strong in traditional beauty I have encountered and certified and US FDA approved industries such as commodities ophthalmology. by the rich diversity within the facilities operate at higher like steel, textiles, white goods, country. Wherever you go, you standards than most European cars and tourism, the country encounter remnants of Turkey’s and US manufacturers. has all necessary conditions to long and rich history. Well develop high tech industries, such maintained and preserved ancient TELL US ABOUT DEVA’S as pharma and biotechnology towns from Greek and Roman EFFORTS AIMED AT among others. times remind the fact that Turkey INTERNATIONAL MARKETS. At DEVA we are committed to was leading the development of We have established our contribute to the development the civilizations during thousands international markets department of the pharmaceutical industry of years. But there are also historic in 2009. Currently, the scope and as such we are convinced sites reminding us of events of our international operations about the potential of the during the First World War. For span business models such pharmaceutical industry here instance, I have been to North as distributorship, in and out in our country. First of all, the Agean this summer. The history of licensing, direct selling of DEVA- Turkish government is putting Gallipoli and Dardanelles affected brand products, API exports, a lot effort into developing the me deeply.

3 words that define Turkey for Philipp Haas: Home Future Growth

FEBRUARY 2020 ISSUE 79 53 Gastronomy

Gastronomical reflection

of Turkish CultureMEDITERRANEAN CUISINE

Turkey has created “Turkish Mediterranean diet” by adding its values and satisfying all the criteria of the Mediterranean cuisine and which is under the protection of UNESCO as a cultural value. 54 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

Alaçatı Herb Festival

THE ALAÇATI Herb Festival, which will be held for the 11th time this year, will take place between April 9-12. Alaçatı Herb Festival is one of the most popular activities in Izmir that UNLIKE many other ethnic cultures, beliefs, lives and material shows the unique herbs cuisines, Mediterranean values that it accumulated over and healthy cuisine of cuisine is not the monopoly centuries to its spiritual values. the Mediterranean and of a particular culture. On the These values are still reflected in Aegean to the world. contrary, it is a valuable “label” the social relations and cuisine Although the festival and a cultural blend shared by of the region. That is the reason is new as of its history, various peoples living around the UNESCO added Mediterranean the life of herbs and the Mediterranean basin. The cuisine cuisine to the “Intangible Cultural tastes prepared with of this geography, shared by many Values List” 2013. UNESCO UNESCO: those herbs are based countries, includes different expresses this in its own words The Mediterranean on centuries, and people cultural variances and cooking as: “The Mediterranean diet diet involves from all over the world techniques. involves a set of skills, knowledge, a set of skills, have been consuming Mediterranean cuisine is the rituals, symbols and traditions these tastes for the same product of a cultural influence concerning crops, harvesting, knowledge, period. For this reason, it and change, although it is not fishing, animal husbandry, rituals, symbols has been receiving great under the influence of a single conservation, processing, and traditions, attention globally since culture. Mediterranean, which is cooking, and particularly the its debut. at the intersection point of Asian, sharing and consumption of particularly the The main purpose European and African continents, food. Eating together is the sharing and of the festival, which has been shaped by the world’s foundation of the cultural identity consumption of brings the Aegean and greatest civilizations throughout and continuity of communities Mediterranean flavors to history. Mediterranean Region, throughout the Mediterranean food. plates every year, is to which is one of the biggest trade basin. It is a moment of social make the cuisine that is centers of centuries, has created exchange and communication, accepted as a “culture” a cuisine that affects the whole an affirmation and renewal of and its ingredients world as a result of the interaction family, group or community permanent in the history of different cultures and many identity. The Mediterranean diet of the world gastronomy components turned into a whole. emphasizes values of hospitality, and present it to Being a cradle of civilizations, neighborliness, intercultural generations to come. Mediterranean reflects the dialogue and creativity, and a FEBRUARY 2020 ISSUE 79 55 Gastronomy

International Urla Artichoke Festival

way of life guided by respect for diversifying the Mediterranean The popular ingredients of diversity. It plays a vital role in cuisine in Turkey is the based on the Mediterranean cuisine cultural spaces, festivals and the enormous diversity in social such as olive oil, olives, celebrations, bringing together structure people of Anatolia. spices, vegetables, fruits, people of all ages, conditions and Turkey, inhabiting this valuable grains and seafood can be social classes. geography between east and West, prepared in thousands of Turkey is the greatest has the ability to produce suitable different ways in Turkey. representative of the values as flavors for every taste. Turkey has ONE OF THE MOST one of the guarantors of sharers of created “Turkish Mediterranean famous Mediterraneans, Mediterranean cuisine. Moreover, diet” by adding its values and “artichoke” is the one the characteristics emphasized satisfying all the criteria of the of the most popular by UNESCO’s are not actually Mediterranean cuisine. dishes and comes in in a situation in which only the The popular ingredients of the with dozens of different Mediterranean region of Turkey; Mediterranean cuisine such as ways. Artichoke, which hospitality, neighborhood values, olive oil, olives, spices, vegetables, is not missing from the catering and pleasantness is the fruits, grains and seafood can be tables of Turkish people, culture of Anatolia. Wherever you prepared in thousands of different always finds its place in go in Turkey; you find someone ways in Turkey. Every flavor is regalements, which is inviting you to their dining table. used in different ways, thanks to a reflection of Turkish There is always someone in these the people of that region adding hospitality. lands who will ask if you are their own cooking methods and Artichoke, which hungry. Thus, Mediterranean practices. is mostly adopted by cuisine is actually an indicator “Wheat”, which is the key Turkey, compared to of moral values of Turkey and element of the Mediterranean other Mediterranean offers it’s visitors this culture with cuisine, has been a part of the countries, is getting generosity. Anatolian culture for centuries. more appreciation Wheat, which is of great each year in Urla, Izmir UNITY SHAPED BY CLIMATE importance in the dietary habits with International Urla The inclusive features of the of the old Mediterranean peoples Artichoke Festival. The Mediterranean cuisine are largely as well as in commercial relations, festival, which shows shaped by the region’s climate and is used a lot in Turkish dishes. It is that this flavor is known geography. There is no need for paired with various vegetables and all over the world, also anything other than the common seafood, in addition to bread and shows that Turkish chefs eatables used to see the common bakery foods. can create faces with a point between the culinary The history of olive oil, vegetable. traditions developed in the the symbol of the traditional The International Urla Mediterranean. The rest is up to Mediterranean diet, in Turkey is Artichoke Festival will be the creativity, culture, habits and estimated to be 4 thousand years. held this year from 24 to diversity of the communities that Olive oil, used in every meal of 26 April. are sharers of this cuisine. the day, was born in this land The biggest factor shaping and and spread to the world. Olive 56 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

One Quarter of Tourism Share from Cuisine oil has a wide range of usage in A PERFECT CUISINE , from breakfast to SYNTHESIS main dishes, from fried dishes to Turkey acts like a great appetizers. springboard to ensure access to Olive oil dishes are used universal culture of Mediterranean as both the main course and cuisine, given the flavors it appetizers in the separate heading has, is a significant example THE MEDITERRANEAN in Turkey Mediterranean cuisine, of the protection of cultural flavors, while being “Turkish Olive Oil Dishes”. Turkey, values transmitted from history presented as one of the being a brand in appetizers but also about continuity and three healthiest cuisines together with , is also diversification. in the world by experts, one of the world brands in olive When you go deep into the rapidly increased its oil, which constitutes the main Mediterranean food culture, you popularity all over the characteristics of the recipes in see a perfect culinary synthesis. world and provided a this category. The quality and taste Since the ancient times of history, Vegetables and great tourism potential of olive oil produced in the country we are evaluating the cultural fruits, which are for the countries sharing has a reputation worldwide. richness of the region, which among the main this culture. Turkey, Vegetables and fruits, which uses the freshest herbs, rich supported by the are among the main topics of the seafood, olive oil and vegetables, topics of the natural, historical and Mediterranean diet also constitute only with lists in restaurants and Mediterranean cultural values of the the most important part of cooking schools. However, when diet also Mediterranean, serves Turkish cuisine in general. These you are visiting the houses of the Mediterranean flavors to foods flavored with olive oil in Mediterranean and Aegean, you constitute the millions of visitors. the Mediterranean region show a may have difficulty digging to the most important Tourism, which has great variety under the influence roots of this depth. part of Turkish around 25 per cent share of cultural differences. Many No matter which city or in Turkish economy, ranks vegetable dishes that symbolize village of the Mediterranean and cuisine in general. among the countries our cuisine from past to present, Aegean regions you go, you can that has the highest such as stuffed leaves, borani, taste a dish made with the same share in gastronomic and silkme, gives a basic idea ingredients but different recipes in tourism income in total about the variety and methods of this cuisine. This is exactly what tourism income. Turkish Turkish Mediterranean cuisine, the cooking method, culture and dishes are the leader in that has the richness from so diversity that UNESCO mentions. countries that its dishes many cultures and peoples lived in The tastes in Mediterranean are adopted by other Anatolia throughout the years. cuisine of Turkey can be diversified cultures. Turkish dishes Seafood, which is one of the to the districts. You can reduce the such as stuffed leaves, main aspects of the Mediterranean Mediterranean cuisine to Hatay, baklava, cacik, lavaş, cuisine, can be used alone in the Izmir, Antalya. If you need to taste doner and many more local Mediterranean cuisine and even more specific flavors, you can dishes put up a fight for can also be served with vegetables diversify Izmir with Urla and Hatay identity. and cereals. with Iskenderun. FEBRUARY 2020 ISSUE 79 57 Do you know?

Göbekli Tepe visited by record number of tourists in 2029

GÖBEKLI TEPE, which was taken by the UNESCO to the World Heritage List and accepted as the zero point of history with its 12 thousand years of history, provided a record visit to Şanlıurfa in 2019. With the announcement of 2019 as the “Göbekli Tepe Year”, more than 5 million local and foreign tourists visited Şanlıurfa in Foreign visitors to Turkey increased 2019 with 1 million 100 thousand accommodation. by 14.31 pct. in 2019

Spoonmaker’s Diamond reopens to visit ACCORDING to the statement made by the Presidency of the National Palaces Administration, priceless treasures kept in the warehouses began to be unearthed after the transfer of Topkapı Palace to the Administration. The 86-carat “Spoonmaker’s Diamond”, which ACCORDING to the January-November 2019 data of the Ministry is exhibited as the biggest Spoonmaker’s Diamond of Culture and Tourism; the number of foreign visitors increased and the most famous of the is considered the fourth by 14.31 percent compared to the same period of 2018, to 42 historical diamonds, started largest diamond of its kind million 910 thousand 408 in 2019. In November, the number to be re-exhibited in the Outer in the world.earum aut of foreign visitors increased by 11.41 percent to 2 million 190 Treasury Department, where erum faccupta des eati thousand 622 compared to the same month of the previous the weapon collection of the beatibus essimin year. According to the World Tourism Organization (UNWTO) Topkapi Palace was exhibited. data,Turkey was the sixth county with most visitors worldwide in Long queues formed in front the visitor rankings. Turkey is also Europe’s sixthcountry in most of the Spoonmaker’s Diamond, tourism revenues and the fourth country that hosts most tourists surrounded by 49 large diamonds, in Europe. which attracted attention. 58 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

THY increased the Turkey sends number of women a new list to UNESCO pilots TURKEY, having signed the UNESCO World Heritage Convention in 1983 and registered 18 places from Turkey so far has sent a new provisional list to UNESCO. In the temporary suggestion list sent by the Ministry of Culture and Tourism, there are 19 places in total including 2 natural- cultural areas, 2 landscaping areas and 15 cultural assets, including the Suleymaniye Mosque, Harran, Mardin and Diyarbakir Castle.

TURKEY’S national airline, Turkish Airlines (THY), increased the number of women pilots to 211, including long haul flights, becoming one of the few airline companies that employs the most number of female pilots. Increasing the number of female pilots from 6 in 2006 to 351 by 2020, THY now has 172 first officers (second pilot) next to 39 captains who passed the challenging exams, including those in training.

Urfa man statue

STUDIES show that a statue found in Şanlıurfa in 1995 was 13,500 years old and the oldest statue in the world. The statue called Urfa Man to be exhibited in Şanlıurfa Museum. A statue similar to Urfa Man was found in Karahantepe, known as the contemporary of Göbekli Tepe, excited the researchers. Works continue in the Karahantepe region, where the statue, which is estimated to be about 11,500 years old, is located.

FEBRUARY 2020 ISSUE 79 59 Arts & Culture

ANNA LAUDEL, BILAL HAKAN KARAKAYA “ALEM-I MULK” January 30, 2020 - March 8, 2020 Anna Laudel’s Art Gallery

THE PERSONAL exhibition of Bilal Hakan Karakaya, who pushes the limits of traditional sculpture art with the different materials he uses, meets with art lovers. The figures of Karakaya, who processes individuals stuck in modern life in his works, are fed by life while describing the alienation of the modern individual who is oppressed ANDY WARHOL AND POP ART under the capitalist system. The artist’s works, which stay away from November 7, 2019 - March 29, all kinds of protective materials against the nature of the statue, such as 2020 gloves, in order not to distance them from the material, tell a different Maslak UNIQ-Expo story in Dante’s Divine Comedy on every floor of the three-story gallery space. Transforming the gallery space into a stage, Karakaya reverses ANDY WARHOL, one of the the static structure of the sculpture and applies the upward trend. The most influential artists of the structures that need to be thinned as they rise in this way become more American Pop Art movement of and more thick and wider. the 20th century, meets art lovers at UniqExpo with the support of McArt.ist with 90 original works. Curated by Begum Alkoçlar, famous pieces of Andy Warhol, such as Marilyn Monroe, Campbell Soup and Flowers to be exhibited for the first time in Turkey, among 40 pieces of pioneers of Pop Art such as Keith Haring, Roy Lichtenstein, James Rosenquist and Robert Indiana. With the coordination of the young artist incubation platform McArt.ist, young representatives of Turkish Pop Art will present their works to the art lovers. You can visit EUROPA GALANTE BAROQUE this exhibition at UniqExpo until ORCHESTRA March 29, to get to know Pop Art February 17 / 20:30 and Andy Warhol in all aspects İş Towers and participate in workshops and art conversations and many more FOUNDED in Italy by Fabio events. Biondi in 1990 to perform both baroque and early classical works, Europa Galante Group has been performing all over the world for more than 30 years. The ensemble, will perform works by Vivaldi and accompany the famous mezzo soprano Vivica Genaux. Europa Galante, one of the best baroque ensembles of our days, will meet the Istanbul audience in February. Using authentic baroque period instruments, Europa Galante promises a very pleasant evening to the listeners 60 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

IN TRACE OF PAPER January 9 - February 29, 2020 Evin Art Gallery

20TH CENTURY masters and contemporary artists of our country’s art come together in the exhibition “In Trace of Paper”. The exhibition brings the relationship of paper with art and the works of masters, who work on paper, representing the age of paper together. Focusing on the history of the paper and the universality of the works produced by the paper, the exhibition also includes sketches drawn on note papers, notes and correspondence from the past drawn on a piece of cardboard previously used for another purpose. The exhibition “In Trace of Paper”, icludes works by, Eren Eyüboğlu, Nuri İyem, Nasip İyem, Selim Turan, Avni Arbaş, Nedim Günsür, Neş’e Erdok, Cengiz Çekil, Rahmi Aksungur, Cansen Ercan, Temür Köran, Hakan Gürsoytrak, Buket Güreli, BIPO & YURI BASHMET Nalan Yırtmaç, Zulal, Hakan February 27, 2020 / 20:00 Cingöz, Emin Turan, Setenay Lütfi Kırdar Auditorium Alpsoy and Uğur Daştan among others and gives the audience JOHN NELSON will conduct repertoire and the famous viola the opportunity to observe the Istanbul Philharmonic Yuri Bashmet. Bashmet, who is an transformation of this common Orchestra, one of Turkey’s leading orchestra conductor as well as a material, which has taken place in symphonic ensemble. Nelson, superior viola virtuosity, is known every area of ​​life. who has led many prominent as one of the contemporary orchestras such as the London musicians. Bashmet will be Symphony, the Paris Orchestra, performing as a soloist in the Leipzig Gewandhaus, Boston, Concerto for Viola and Orchestra, Philadelphia, Cleveland and New which Alfred Schnittke composed York Philharmonic, is known for for him. his mastery of the romantic period

IMOGEN COOPER March 14, 2020 / 20:00 Sakıp Sabancı Museum

THE BRITISH pianist Imagen Cooper, who has received worldwide acclaim for her Schubert and Schumann interpretations. Besides her award-winning Mozart interpretations, is recognized as one of the best interpreters of the classical and romantic repertoire on the international platform with her pianist and lyricism. Cooper, who has 35 albums and is one of the most prominent interpreters of the classical music world, will meet her audience within the scope of Istanbul Recitals. FEBRUARY 2020 ISSUE 79 61 Arts & Culture

OTTO BAROK – SHAKESPEARE ALL SAINTS February 11, 2020 / 20:00 All Saints Fashion Church-Kadıköy

MEANWHILE IN THE MOUNTAINS: SAGALASSOS 27 November 2019 - 28 May 2020 Yapı Kredi Culture and Arts

MEANWHILE in the Mountains: OTTO BAROK ensemble, known for compiling and The Sagalassos exhibition interpreting selected works from the Baroque era and includes many different types giving priority to the lesser known composers, takes art of historical artifacts, from the lovers on a long journey towards Shakespeare period mammoth bones, found in the with Soprano Linet Şaul, gamba artist Bülent Oral and ruins of Burdur, which were archilute artist Diego Leveric. The outstanding works of proven to live in Anatolia during the leading composers of the Baroque era will be featured prehistoric times, to monumental in the concert program of Otto Barok, in the unique sculptures of Roman emperors acoustics and magical atmosphere of the All Saints Marcus Aurelius and Hadrian. Fashion Church. The exhibition, spread over three floors, offers the opportunity to witness the history of the ancient city of Sagalassos, on the foothills of the Taurus Mountains and the life of its people. Terracotta figures, gods, goddesses and hero sculptures reflecting the daily and social lives and belief rituals of the ancient Sagalassos inhabitants can be seen in chronological and thematic sections, dating back to different periods of Sagalassos and Pisidia Region. Visitors will also have the opportunity to meet ancient Pisidians with Rhodon and Eirènè busts, which were specially brought from Belgium for the exhibition and produced with the facial reconstruction technique. LÜTFI ÖZKÖK: PORTRAITS photography. December 21, – May 3, The photographs selected Istanbul Modern for the exhibition start in the 1950s, when Özkök began to take ISTANBUL Modern Photography photographs to accompany his Gallery presents a selection of articles in literary magazines, portraits by the photographer and continue through the 1990s. Lütfi Özkök (1923-2017), They include 89 portraits of internationally renowned for his leading artistic and literary figures portraits of authors and artists. from the post-World War II era, The photographs are from Özkök›s among them 24 Nobel laureates, archive in Stockholm, Sweden, and present an overview of a where he spent most of his life. highly transformative time. The exhibition features the artist’s The exhibition examines Lütfi photographs of 80 figures in art Özkök’s relationships with his and literature starting from the subjects through texts, objects and 1950s, inviting viewers to witness documents that accompany the a period while contemplating photographs and describes a period the various meanings of portrait through the artist’s personal story. 62 FEBRUARY 2020 ISSUE 79 The Turkish Perspective

“A JOURNEY INTO THE WORLD OF OSMAN HAMDI BEY” VIRTUAL REALITY EXPERIENCE It can be visited every day, except for Mondays and special days Pera Museum - Sevgi and Erdoğan Gönül Gallery

AN OTTOMAN intellectual raised by the Era… An exceptional personality, who made substantial, diversified and lifelong contributions to various fields of culture and arts such as painting, archaeology, museology, MEMORIES OF HUMANKIND and art education... - STORIES FROM THE This special section dedicated to OTTOMAN MANUSCRIPTS Osman Hamdi Bey at the Sevgi ISTANBUL RESEARCH and Erdoğan Gönül Gallery of Pera INSTITUTE Museum displays different aspects 18 OCTOBER 2019 - 25 JULY of his impassioned relationship 2020 with the art of painting through his works included in the Suna MEMORIES OF HUMANKIND: and İnan Kıraç Foundation Stories from the Ottoman Collection. Manuscripts nudges the door The exhibition also pays tribute ajar to the memory of humanity, to this multifaceted personality which crystallizes in manuscripts by “A Journey into the World of and is alternatively worldly and Osman Hamdi Bey” virtual reality otherworldly, multilingual and experience which enables the multi-religious, urban and rural, audience to pay visit to Osman unique and ordinary, sometimes Hamdi Bey’s working space and to very alien and occasionally very step into his painting The Tortoise familiar, fragmentary, incomplete, Trainer. and always inspiring.

US ACTUALLY January 18 – February 22 Mixer Art Galery

MIXER is hosting the very unique exhibition “Us Actually” between January 18th - February 22nd with the artworks of Ayça Telgeren, Ahu Akgün, Börte İpek, Bengisu Bayrak, Furkan Öztekin, Mediha Didem Türemen, Meltem Şahin, Meltem Sırtıkara, Okan Kaya, Volkan Aslan, Yasemin Özcan. The exhibition “Us Actually”, which will take place from January 18th to February 22nd, shares sincerely the love, the state of being a partner, the ability to stay together or leave when necessary. With reference to unforgettable films, loves and times, it becomes a sincere, volatile and romantic exhibition that will remain in memory for a long time. FEBRUARY 2020 ISSUE 79 63

Figures The Turkish Perspective 2019 exports in numbers 40 18 the number the number of countries of cities that that exported imported over 1 billion over 1 billion dollars dollars from Turkey 23 9.3 the number the of sectors percentage of exceeded 1 the increase billion dollars in number of threshold exporters

17,544 the number of companies started exporting Shares in exports 9.2 pct. Africa

Top exporting sectors Automotive 30.5 billion USD 48.8% pct. EU Chemicals 20.6 billion USD Apparel exports 17.8 billion USD Electronics 11.2 billion USD Machinery 7.8 billion USD 19.3% pct. Middle East

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ISTANBUL Airport hosted a total of 52 million passengers since Istanbul Airport hosted over 50 it’s opening in April 6th, with 12 million and 720 thousand domestic passengers and 39 million and 857 thousand million passengers in less than a year international passengers. Istanbul Airport hosted 52.6 million passengers, 25 percent of total passengers traveling through Turkey in 2019, according to data from the country’s airport authority the General Directorate of State Airports Authority (DHMİ). Istanbul Airport officially opened on Oct. 29, 2018, the 95th anniversary of the founding of the Republic of Turkey and took over air traffic from Ataturk Airport on April 6, 2019. Turkish airports saw 209.09 million air passengers, including transit passengers in 2019. Istanbul Airport was awarded by one of the most prestigious publications in the global tourism sector Global Traveler, with “Special Achievement Award” in the “Outstanding Innovations” category at this year’s Leisure Lifestyle awards. Countries with a population of 1.55 billion people, a gross domestic product of 35.7 trillion dollars and a trade volume of 6.8 trillion dollars can be accessed with a 4-hour flight from Turkey

66 FEBRUARYJANUARY 20202020 ISSUEISSUE 7979 The Turkish Perspective

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